Estate of Saunders v. Comm'r
United States Tax Court
Decedent's estate claimed a deduction of $30 million in relation to litigation pending against the estate at the date of death. The case was submitted on stipulated facts and an offer of proof for a preliminary determination as to whether the amount of the claim was ascertainable with reasonable certainty and deductible as of the date of death, in accordance with sec. 20.2053-1(b)(3), Estate Tax Regs.
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Decedent's estate claimed a deduction of $30 million in relation to litigation pending against the estate at the date of death. The case was submitted on stipulated facts and an offer of proof for a preliminary determination as to whether the amount of the claim was ascertainable with reasonable certainty and deductible as of the date of death, in accordance with sec. 20.2053-1(b)(3), Estate Tax Regs. Held: Different standards apply to including a claim in favor of an estate in the gross estate and deducting a claim against an estate for estate tax purposes. Held, further, as demonstrated by…
1Opinion of the Court
OPINION
Cohen, Judge:
Respondent determined a deficiency of $14,400,000 in estate tax due from the Estate of Gertrude H. Saunders (decedent). Respondent also determined a penalty under section 6662(h) of $5,760,000, but that penalty has now been conceded. The case is before the Court for a preliminary determination of whether a claim against the estate satisfies the requirements of section 20.2053-l(b)(3), Estate Tax Regs., as in effect for the date of the decedent’s death that a claim may be deducted “though its exact amount is not then known, provided it is ascertainable with reasonable…
2Cases cited23 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Propstra v. United StatesCourt of Appeals for the Ninth Circuit · 1982
- Harry S. Stonehill and Robert P. Brooks v. United StatesCourt of Appeals for the Ninth Circuit · 1969
- United States v. StonehillCourt of Appeals for the Ninth Circuit · 1983
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3Cited by3 opinions
- Marshall Naify Revocable Trust v. United StatesCourt of Appeals for the Ninth Circuit · 2012
- Estate of Gertrude Saunders v. CirCourt of Appeals for the Ninth Circuit · 2014
- Estate of Saunders v. Comm'rUnited States Tax Court · 2011