City Bank Farmers Trust Co. v. Graves

The issue in this case is whether an estate may claim it has sustained a loss deductible for income tax purposes because it received in payment of a residuary legacy an amount less than that at which such interest was appraised for transfer tax purposes.

The facts are these. One George Ehret died in 1927, leaving a will by which a one-seventh interest in his residuary estate was given to his daughter, Madeleine L. Ottmann. She died on May 4, *6731930, and at that time the administration of the Ehret estate was not complete and her share had not been fully paid. Mrs. Ottmann’s remaining…