Sun First National Bank of Orlando v. United States

*472On rehearing, the opinion of the court of November 15, 1978, is withdrawn, and the following opinion is substituted:

This case, before us on cross-motions for summary judgment, presents a difficult question involving the federal income tax liability of a trust for capital gains it received after the death of the settlor who was the income beneficiary of the trust during her lifetime: whether the gains were "income in respect of a decedent” under section 691 of the Internal Revenue Code of 1954, so that the trust was entitled to a deduction for the estate taxes that were attributable to the…