Commerce Trust Company and Robert W. Willits, Executors of the Estate of William G. Parrott, Deceased v. United States

This appeal raises the single issue of whether Section 642(g) of the 1954 Internal Revenue Code prevents an estate from using expenses incurred in the selling of stocks and securities both as a deduction for estate tax purposes under Section 2053 of the Code and as an offset against the gross sale amount in computing capital gains and losses for estate income tax purposes. We hold that it does not.

The appeal evolved from an action brought in the United States District Court for the Western District of Missouri by the executors of an estate for recovery of federal income taxes paid by the…