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tax return. Petitioner petitioned this Court for a
redetermination.1
Petitioner subsequently filed an amended petition alleging
that "The Commissioner erred in determining said Deficiency by
disallowing recoupment against such [estate] tax amount for the
income tax paid by the Bessie I. Mueller Trust * * * on capital
gains realized from the post-death sale of * * * Mueller Company
common stock includable in the Decedent's gross estate." The
Bessie I. Mueller Administration Trust (the Trust) is the
residuary legatee of decedent's estate. After decedent's death,
the Trust sold shares of Mueller Co. stock that were included in
decedent's gross estate. On its income tax return, the Trust
reported gain on the sale using a basis of $1,500 per share.2
1Decedent Bessie I. Mueller resided and was domiciled in
Port Huron, Michigan, at the time of her death, and her will was
admitted to probate by the Probate Court of St. Clair County,
Michigan. John S. Mueller, the personal representative in this
case of decedent's estate and one of the two trustees of the
Administration Trust, was a resident of Naples, Florida, when he
filed the petition in this case. The estate’s other personal
representative and the other trustee of the Administration Trust
is Milton W. Bush, Sr., an attorney who resides in Port Huron,
Michigan. The Michigan National Bank, which was engaged by the
two trustees as their agent upon the death of decedent, has its
principal corporate office in Michigan. Throughout the time
relevant to this case, the Administration Trust has been
administered in Michigan.
2The record does not explain why the Trust used a basis that
was $5 per share less than the amount petitioner reported as the
fair market value of the shares in the estate tax return.
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