Du Val v. Commissioner
United States Tax Court
Where a bank, owner of a claim against decedent as guarantor of notes, consented to distribution of the estate without payment of its claim, reserving, however, a claim against a co-guarantor, and where the estate will never be required to pay the claim, held, such claim is not deductible from the gross estate of decedent, although formally allowed by a court having jurisdiction of the settlement of the estate.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
This case involves an alleged claim for $175,000 against the estate of decedent. The deduction is sought under section 812 (b) (3) of the Internal Revenue Code prior to its amendment by section 405 of the Revenue Act of 1942.1
The cited section allows a deduction for such claims against the estate as are allowed by the laws of the jurisdiction under which the estate is being administered to the extent that they were contracted bona fide and for an adequate consideration in money or money’s worth.
The so-called claim grew out of the transactions in whifih decedent and…
2Cited by20 opinions
- Propstra v. United StatesCourt of Appeals for the Ninth Circuit · 1982
- Estate of Hagmann v. CommissionerUnited States Tax Court · 1973
- Marshall Naify Revocable Trust v. United StatesCourt of Appeals for the Ninth Circuit · 2012
- Shedd v. CommissionerUnited States Tax Court · 1961
- Estate of Courtney v. CommissionerUnited States Tax Court · 1974
15 more not listed; retrieve them via the Exa API.