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Cir. 1971). CSB agreed to pay insurance proceeds to decedent’s
estate because he performed valuable services for CSB such as
bringing cases and clients to CSB. A payment for or in
recognition of a decedent’s services made after the death of a
decedent to his or her estate may be income in respect of a
decedent even if the decedent had no enforceable right to receive
the payment at the date of death. Estate of Bausch v.
Commissioner, supra; Estate of Daniel v. Commissioner, 173 F.2d
966 (2d Cir. 1949) (bonus awarded after the decedent died), affg.
10 T.C. 631 (1948).
Petitioner argues that petitioner was entitled to a stepped-
up basis of $5 million in decedent’s stock. Sec. 1014(b)(6).
We disagree. The basis of property in the hands of a person
acquiring the property from a decedent is generally its fair
market value at the date of the decedent's death. Sec. 1014(a).
However, section 1014 does not apply to “property which
constitutes a right to receive an item of income in respect of a
decedent under section 691.” Sec. 1014(c). Thus, section 1014
does not apply to CSB’s payment to decedent’s estate to the
extent it is income in respect of a decedent.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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