Estate of Margaret D. Love, Deceased Anne Love Hall Stanard T. Klinefelter v. Commissioner of Internal Revenue

HIRAM H. WARD, Senior District Judge:

This case comes before this Court on appeal from the United States Tax Court, which found that the estate of Margaret D. Love (the “Estate”) owed a deficiency of $48,886 in estate taxes. The issues presented are, first, whether deductibility under 26 U.S.C. § 2053(a)(2) is controlled by state or federal law; and, second, whether the Tax Court properly determined that the Estate is not entitled to deduct as administrative expenses a $147,000 payment (the “payment”) made pursuant to a “foal-sharing” agreement. Because of compelling policy reasons, we hold…