Evening star., 1932-03-15

tax can be made" said the bureau, IN
! the bill by including the following pro-
/ vision as a new section B:
"'Sec. 9, A transfer OF properly on
| which an estate tax has been paid 70
| the District of Columbia within two
years shall be included at its fuH mar
ket value in the gross estate as tnougn
1t had not been previously transferred
| but wherever the property can De loen-
titled as having been received py tne
decedent by gift, bequest, devise OF m
heritance, within two years, or can
be identified as having peen ac-
quired and exchanged 1or prop-
erty so received, that part OF the
estate tax paid to the District OF
Columbia within two years upon this
property shall be allowed as a credit
| against the present estate tax; provided
however. this credit shall not exceed the
! tax due under the present appraisement
of such property for estate TAX pur-
poses
The next change relates to coop
Grafton with Federal tax officials, and
suggests that the provision in the Mapes
| bill requiring executors to file dupli-
Gates of the Federal tax return with the
| Probate Court of the District be changed
to REQUIRE the filing of such duplicates
with the District Commissioners. The
bureau points out that the Probate
Court ordinarily is without interest
in these returns. Filing them with the
Commissioners seems more practicable,
the bureau says, especially as the Dis
trict tax may be based on 30 per cent
of the Federal tax
The bureau next takes up "applica-
ton of general rules for valuation OF
estates"
Under this heading the bureau rec
ommendS abandoning the rule In the
Mapes bill that would require apprais-
ers to consider the average market value
as listed on stock exchanges for the six
months preceding death in determining
the value of securities. The bureau
also frowns on this same six-month
rule in appraising all other intangible
property by considering the ranging Of
values during such period OF time as
the primary factor. It recommends the
striking out of the six-month rule, leav-
ing the appraisal section in the follow
ing simple language:
ut shall be the duty Of the appraisers
to appraise all property embraced in
the esetates taxable under this act at
its full market value as Of date Of death
of the transferor."
Valuing Property Important.
Discussing this recommendation, the
bureau said: mo phase Of the admins
tration of estate tax Is more important
than the method and time of valuing
the property of the decedent. Market
value, which is invariably used, may
fluctuate from day to day, especially in
the case of personal property in the
form of stocks and bonds. which COM
prise sizable portion Of most large
estates"
The Federal Government and most of
the States require property to be valued
as of the date of decedent's death. The
bureau says that while the Mapes bill
also follows this plan, it goes further
by requiring that for stocks and bonds
the average market value on the stock
exchanges for six months preceding
death shall be the primary factor, with
ranging of values during the same pc
Rod to be considered in the case of
other intangible property.
The bureau says this rule would give
ian equated value as of three months
prior to decedent's death" pointing out
that in rising market the estate would