Kress v. Department of Revenue

CARL N. BYERS, Judge.

Plaintiffs (taxpayers) appeal from a magistrate Decision upholding adjustments to taxpayers’ 1995 income tax return. The parties have stipulated the facts and submitted the matter for decision in the Regular Division on Defendant’s motion for summary judgment. The court will discuss the facts and its resolution of each of the three issues separately.

First Issue

May an installment payment of estate taxes paid by a beneficiary be deducted by that beneficiary?

The stipulated facts indicate that the estate of Edward Kress elected to pay its estate taxes in installments. In 1994…