Estate of Reilly v. Commissioner
United States Tax Court
In litigation between the petitioner and the decedent's widow (who was a beneficiary under decedent's will) relating to the ownership of certain property transferred to her by the decedent prior to his death, the State court approved a compromise agreement which required that petitioner pay the widow's attorneys' fees.
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In litigation between the petitioner and the decedent's widow (who was a beneficiary under decedent's will) relating to the ownership of certain property transferred to her by the decedent prior to his death, the State court approved a compromise agreement which required that petitioner pay the widow's attorneys' fees. Held, petitioner may deduct these fees as (1) administration expenses, under sec. 2053(a)(2), I.R.C. 1954, either as attorneys' fees of a beneficiary pursuant to sec. 20.2053-3(c)(3), Estate Tax Regs., or as a cost of administration or (2) as a payment made in settlement of a…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency of $18,392.26 in petitioner’s Federal estate taxes. Concessions having been made by both parties, the sole issue remaining is whether attorneys’ fees are deductible under section 20531 when paid by an estate but incurred by the decedent’s widow.
All of the facts in this case have been stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.
Petitioner is the Estate of Peter W. Reilly, deceased, by its executor,…
2Cases cited25 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Anderson, Clayton & Co., Plaintiff-Appellee-Cross-Appellant v. United States of America, Defendant-Appellant-Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1977
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
- Estate of David Smith, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
- Mosells Silvey Pitner v. United StatesCourt of Appeals for the Fifth Circuit · 1967
20 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- McGahen v. CommissionerUnited States Tax Court · 1981
- LeFever v. CommissionerCourt of Appeals for the Tenth Circuit · 1996
- Estate of De Witt v. CommissionerUnited States Tax Court · 1987
- Magill v. Comm'rUnited States Tax Court · 1982
- Estate of Bartberger v. CommissionerUnited States Tax Court · 1988
8 more not listed; retrieve them via the Exa API.