Commissioner of Internal Revenue v. Porter

SWAN, Circuit Judge.

This appeal presents a question as to the meaning and applicability of section 303 (a) (1) of the Revenue Act of 1926 (44 Stat. 72), as amended by the Revenue Act of 1932, § 805 (47 Stat. 280), which permits to be deducted from the gross estate in computing the net taxable estate claims against the estate founded upon a promise or agreement “to the extent that they were contracted bona fide and for an adequate and full consideration in money or money’s worth.”

For several years prior to his death on November 29, 1932, Alexander J. Porter had guaranteed in various amounts…