Estate of Davis v. Commissioner
United States Tax Court
The decedent executed a promissory note under seal in the amount of $ 30,000 payable to her only son on or before the expiration of 10 years. The note was secured by a mortgage under seal on property owned by her. The son paid no money to his mother with respect to the note and mortgage but considered them to be a gift.
Read the full summary
The decedent executed a promissory note under seal in the amount of $ 30,000 payable to her only son on or before the expiration of 10 years. The note was secured by a mortgage under seal on property owned by her. The son paid no money to his mother with respect to the note and mortgage but considered them to be a gift. Held, execution of the note and mortgage under seal does not establish that adequate and full consideration in money or money's worth, within the meaning of sec. 2503(c)(1)(A), I.R.C. 1954, was given for them.
1Opinion of the Court
'Simpson, Judge:
The respondent determined a deficiency of $3,-816.80 in the Federal estate tax of the Estate of Ella J. Davis. The issue for decision is whether the estate is entitled, under section 2053 of the Internal Revenue Code of 1954,1 to a deduction for a claim against the estate represented by a note and mortgage executed by the decedent under seal.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
Ella J. Davis (the decedent), a widow, died testate, a resident of Wisconsin, on July 20,1967. A Federal estate tax return for the Estate of Ella J. Davis…
2Cases cited16 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Merrill v. FahsSupreme Court of the United States · 1945
- Taft v. CommissionerSupreme Court of the United States · 1938
11 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Estate of Lazar v. CommissionerUnited States Tax Court · 1972
- Estate of Carli v. Comm'rUnited States Tax Court · 1985
- Estate of Satz v. CommissionerUnited States Tax Court · 1982
- In Re Estate of MathaySupreme Court of Pennsylvania · 1975
- Estate of Carli v. Comm'rUnited States Tax Court · 1985
4 more not listed; retrieve them via the Exa API.