Towner v. Commissioner of Internal Revenue

CLARK, Circuit Judge.

Petitioners seek review of a decision of the Tax Court, 12 T.C. 962, upholding the Commissioner’s determination of an estate tax deficiency to the extent of $159,447.63 against the estate of Margaret Ruth Brady Farrell, late of Albany, New York, of whose estate they are executors. In making their return they deducted from the gross estate, upon computation of the net estate for tax purposes, a portion of the indebtedness represented by a certain note made by the decedent'and shown in the estate tax return as $331,938.33. Of this sum, $33,400 is coneededly deductible. As…