Estate of Brandes v. Commissioner
United States Tax Court
In 1977, D entered into a contract to sell a farm to her son, S. The purchase price was to be paid in installments, and the title to the property was held in escrow pending completion of such payments. D died in 1980 before all of the payments were made.
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In 1977, D entered into a contract to sell a farm to her son, S. The purchase price was to be paid in installments, and the title to the property was held in escrow pending completion of such payments. D died in 1980 before all of the payments were made. Held: 1. The value of D's rights under the contract of sale is includable in the estate; consequently, the estate is not entitled to value such rights as qualified real property under sec. 2032A, I.R.C. 1954. 2. Sec. 2036, I.R.C. 1954, is not applicable to the transfer of the farm since it constituted a bona fide sale for full consideration.
1Opinion of the Court
OPINION
SIMPSON, Judge:
The Commissioner determined a deficiency of $14,630.57 in the estate tax of the petitioner. The issues for decision are: (1) Whether an estate can value a farm under section 2032A of the Internal Revenue Code of 19541 with respect to which the decedent had entered into a contract of sale; and (2) whether section 2036 is applicable to such sale.
All of the facts have been stipulated, and those facts are so found.
Elmira S. Brandes (the decedent) died on December 12, 1980. Her son, Robert E. Brandes, was her sole surviving heir and has been appointed the executor of her…
2Cases cited6 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner of Internal Revenue v. Union Pac. R. Co.Court of Appeals for the Second Circuit · 1936
- Union P. R. Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- Buckwalter v. CommissionerUnited States Tax Court · 1966
- Ennis v. CommissionerUnited States Tax Court · 1951
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Estate of Brandes v. CommissionerUnited States Tax Court · 1986