Antoinette M. Faraco v. Commissioner of Internal Revenue

HAYNSWORTH, Circuit Judge.

Mrs. Faraco and her former husband, as tenants by the entirety with right of survivorship, were the owners of improved real estate in Arlington, Virginia. The original cost was $159,029.33, but, when the husband died on December 26, 1953, it had a fair market value of $650,-000. For purposes of the Federal Estate Tax, it was includible in the gross estate of the husband at the current market value. The taxpayer contends that she should be allowed the stepped-up basis for depreciation of the improvements in computing her 1954 income tax. The Tax Court denied her…