Estate of Bailly v. Commissioner
United States Tax Court
In Estate of Bailly v. Commissioner, 81 T.C. 246 (1983), we held that when payment of estate tax liability has been deferred under sec. 6166, I.R.C. 1954, the amount of interest to be incurred on the Federal and State estate tax liabilities may be deducted under sec. 2053(a)(2) only as that interest accrues.
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In Estate of Bailly v. Commissioner, 81 T.C. 246 (1983), we held that when payment of estate tax liability has been deferred under sec. 6166, I.R.C. 1954, the amount of interest to be incurred on the Federal and State estate tax liabilities may be deducted under sec. 2053(a)(2) only as that interest accrues. Petitioner timely filed a motion for reconsideration claiming that, contrary to language in our original opinion, because of the operation of sec. 6512(a), petitioner will not be able to legitimately claim deductions for that portion of the interest accruing after our decision becomes…
1Opinion of the Court
SUPPLEMENTAL OPINION
Dawson, Chief Judge:
This case is before us on petitioner’s motion for reconsideration of our opinion in the above-entitled case, 81 T.C. 246 (1983). Under the facts of this case, Dante M. Fiorini (petitioner), personal representative of the Estate of Pierre J. Bailly, deceased, properly eleeted under section 61661 to pay the estate tax liability in 10 equal installments. Petitioner deducted on the initial Federal estate tax return an estimate of the interest to be accrued over the 10 year deferral period. The issue before us was the proper timing of the deduction of the…
2Cases cited11 opinions
- Emma R. Dorl v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
- Dorl v. CommissionerUnited States Tax Court · 1972
- Haft Trust v. CommissionerUnited States Tax Court · 1974
- Robin Haft Trust v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1975
- Cleveland v. HigginsCourt of Appeals for the Second Circuit · 1945
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3Cited by44 opinions
- Estate of Baumgardner v. CommissionerUnited States Tax Court · 1985
- Vaughn v. CommissionerUnited States Tax Court · 1986
- Harris v. CommissionerUnited States Tax Court · 1992
- Estate of Richardson v. CommissionerUnited States Tax Court · 1987
- Solitron Devices, Inc. v. United StatesCourt of Appeals for the Eleventh Circuit · 1989
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