Estate of Posen v. Commissioner

Decedent's daughter was the administratrix and sole heir of decedent's estate. Acting in her capacity as administratrix, she sold a cooperative apartment which was part of the estate, primarily because she did not want it distributed to her as heir. Held, the expenses of selling the cooperative apartment were allowable expenses of the estate under New York State law. Held, further, sec. 20.2053-3(a) and (d)(2), Estate Tax Regs., is valid, and, therefore, because the selling expenses were not necessarily incurred in the administration of the estate, they were not deductible administration…