-20-
Respondent then sought to amend respondent’s answer after
the deadline for motions with respect to the pleadings to assert
that the proper valuation date was the date of Frederic’s death,
rather than the alternate valuation date. We denied respondent’s
motion to amend his answer due to the substantial disadvantage
and prejudice to petitioners if respondent amended his answer at
such a late date. We accordingly shall not consider respondent’s
renewed arguments that the stock should be valued on the date of
Frederic’s death, rather than the alternate valuation date.
B. Stock To Be Valued
Respondent renews two arguments he made in his motion for
partial summary judgment regarding the stock to be valued. He
argues that we should value the pre-reorganization stock on the
alternate valuation date, or, alternatively, that we should
ignore the transfer restrictions and the purchase option in
valuing the post-reorganization stock. Although these issues are
now ripe for decision, we reject both respondent’s arguments.
1. General Rules on Valuation Date
Section 2032 allows the executor of an estate to choose to
value the estate’s property at a time after the date of death.
Sec. 2032(a). If an executor chooses this option, property
“distributed, sold, exchanged, or otherwise disposed of” within 6
months after the decedent’s death is valued as of the date of the
distribution, sale, exchange, or other disposition. Sec.
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