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Property Valuation For Transfer Taxes: Art, Science, Or Arbitrary Decision?, Stephen C. Gara, Craig J. Langstraat
Property Valuation For Transfer Taxes: Art, Science, Or Arbitrary Decision?, Stephen C. Gara, Craig J. Langstraat
Akron Tax Journal
According to the regulations, the value referred to in the IRC is defined as "fair market value." Fair market value is itself defined as the "price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy nor sell, and both having reasonable knowledge of relevant facts."9 The so-called hypothetical "willing buyer/seller" standard is prevalent throughout the case law dealing with this issue."0 Given the importance of this standard, additional discussion is warranted.
The standard requires an analysis of both sides of the transaction. It is not appropriate to …