-54-
estate as an administration expense.19 Petitioner reported this
expense on Schedule L of Form 706 as an expense incurred for the
"Maintenance, insurance, upkeep and cleaning of condominium at
[address]".20
Respondent determined that the value of the gross estate
should not be reduced for this amount because the expenses of
maintaining the condominium are the responsibility of the
surviving co-owner and the beneficiaries of decedent's estate and
as such are not required for the administration of it.
Petitioner asserts that an administration expense of $5,000
per year for preserving and maintaining an interest in property
valued at $300,000 is reasonable, and that the 5 years estimated
to distribute the property is not a protracted period of
administration under the particular circumstances.
Section 2053(a)(2) provides that administration expenses
shall be deducted from the value of the gross estate if they are
allowable by the laws of the jurisdiction under which the estate
is being administered. Section 20.2053-3(a), Estate Tax Regs.,
provides as follows:
The amounts deductible from a decedent's gross estate as
"administration expenses" * * * are limited to such expenses
as are actually and necessarily incurred in the
administration of the decedent's estate; that is, in the
19 The executors discounted at 7 percent five 50-week
years of $100 per week payments.
20 See supra note 2.
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