Rosalyn Deutsch - Page 26

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               Rev. Rul. 64-101, 1964-1 C.B. (Part 1) at 78, also cited               
          similarities in “purpose and effect” between statutory dower and            
          temporary family support allowances payable from corpus, which              
          were excluded from the subchapter J estate under section                    
          1.661(a)-2(e), Income Tax Regs., at the time Rev. Rul. 64-101,              
          1964-1 C.B. (Part 1) 77, was published.  However, Estate of McCoy           
          v. Commissioner, 50 T.C. 562 (1968), held invalid that portion of           
          section 1.661(a)-2(e), Income Tax Regs., and the regulation was             
          accordingly modified.17  Nevertheless, in modifying the portion             
          of the regulation dealing with family support allowances, the               
          Commissioner did not retract support for the exclusion of                   
          statutory dower from the subchapter J estate on the ground of its           
          legal similarity to real property whose title directly vests in a           




               16(...continued)                                                       
          obviously does not rely upon that reading inasmuch as it relies             
          upon the similarity of statutory dower to real property, passage            
          of title to which is subject to debts secured by mortgages and              
          other liens.                                                                
               17 Under sec. 1.661(a)-2(e), Income Tax Regs., as it                   
          currently reads, temporary family and surviving spouse support              
          allowances, whether payable from income or corpus under local               
          law, are included in a beneficiary's gross income as second tier            
          distributions.  Secs. 1.662(a)-2(e), 1.662(a)-3(b), Income Tax              
          Regs.  But see Ferguson et al., supra sec. 6.10 at 6:19, which              
          distinguishes between statutory nonvested family support                    
          allowances, which may be awarded at the discretion of the                   
          presiding court, Estate of Cunha v. Commissioner, 279 F.2d 292,             
          297 (9th Cir. 1960), affg. 30 T.C. 812 (1958), and are included             
          in subchapter J distributions, and vested family support                    
          allowances, which are excluded.                                             




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