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Petitioner cites and strongly relies upon our decision in
Estate of Harper v. Commissioner, 11 T.C. 717 (1948). Petitioner
cites Harper to support the proposition that for estate tax
purposes the value that is transferred under section 2033 is the
realizable value of an asset during decedent's life and no more.
Section 2033 provides:
Sec. 2033. Property In Which The Decedent Had An
Interest.
The value of the gross estate shall include the value
of all property to the extent of the interest therein of the
decedent at the time of his death.
Petitioner states on brief that "In Harper the Court faced
the precise issue of this case". We do not agree.
On the surface, some of the words of Harper might, when read
out of context, appear to support petitioner's position. There
we concluded our Opinion by saying that
At the time of her death the decedent had an interest
in notes the value of which did not exceed the value of
the assets held as security therefor plus the net worth
of the makers, and that is the interest which ceased at
her death. We hold that the petitioner correctly
returned the value of the interest of the decedent in
the notes at the time of her death for estate tax
purposes. [11 T.C. at 720.]
This passage was in response to an argument by the Commissioner
that the value of the notes was enhanced because immediately upon
the death of the decedent the makers of the notes, who were also
Harper's heirs, became invested with more than sufficient assets
to satisfy their obligation. Id.
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