Commissioner of Internal Revenue v. Wade

The question raised by this appeal is whether the Tax Court was right in expunging a deficiency in income tax assessed against the taxpayer for the year 1940. The taxpayer was the wife and life beneficiary of a trust, executed by her husband on September 14, 1935, which provided that after his death the trustee should determine the value of the trust estate by deducting any indebtedness, and “the total amount of all succession, estate and inheritance taxes, paid or payable under the provision hereinafter made.” Having so appraised the estate, the trustee was to divide it into two equal…