Estate of Bahr v. Commissioner
United States Tax Court
Petitioner incurred liability for interest to the Government for deferred payment of estate tax to avoid forced sales of assets to pay the estate tax. The interest was allowable by the law of the State in which the estate was being administered.
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Petitioner incurred liability for interest to the Government for deferred payment of estate tax to avoid forced sales of assets to pay the estate tax. The interest was allowable by the law of the State in which the estate was being administered. Held: Interest expense incurred by petitioner on the unpaid balance of its Federal estate tax liability deferred under sec. 6161, I.R.C. 1954, is deductible as an administration expense under sec. 2053(a)(2). Ballance v. United States, 347 F.2d 419 (7th Cir. 1965), not followed. Rev. Rul. 75-239, 1975-1 C.B. 304, is invalid.
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined a deficiency in estate tax due from the Estate of Charles A. Bahr, Sr., in the amount of $476,683.09. The only issue for decision is whether interest expense incurred by petitioner on the unpaid balance of its Federal estate tax liability deferred under section 6161, I.R.C. 1954,1 is deductible as an administration expense under section 2053(a)(2).
All of the facts have been stipulated. The stipulation of facts and the exhibits attached thereto are incorporated by this reference. Only those facts necessary for an understanding of our opinion will…
2Cases cited17 opinions
- Bruning v. United StatesSupreme Court of the United States · 1964
- Manning v. Seeley Tube & Box Co.Supreme Court of the United States · 1950
- United States v. ChildsSupreme Court of the United States · 1924
- Todd v. CommissionerUnited States Tax Court · 1971
- Huntington v. CommissionerUnited States Board of Tax Appeals · 1937
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3Cited by54 opinions
- Peterson Marital Trust v. CommissionerUnited States Tax Court · 1994
- Estate of Baumgardner v. CommissionerUnited States Tax Court · 1985
- Estate of Bailly v. CommissionerUnited States Tax Court · 1983
- Estate of Black v. Comm'rUnited States Tax Court · 2009
- Estate of Richardson v. CommissionerUnited States Tax Court · 1987
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