- 24 -
to his divorce from Ms. Fratini. Therefore, based on
petitioner's initial allocation on Form 706 of 100 percent of the
value of both Laidley and Acadia and because petitioner did not
provide us with sufficient evidence in order to allocate any of
Ms. Friedeberg's services to either the Laidley or Acadia
properties, we find that petitioner has failed to carry the
burden of proving that adequate consideration in money's worth
was contributed by Ms. Friedeberg to the joint interests in the
Laidley or Acadia properties. Sec. 2040; Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
With respect to the remaining assets, petitioner argues that
the estate is entitled to deduct one-half of the date-of-death
value of two checking accounts containing $29,724,10 a savings
account containing $5,214, and a CD valued at $100,000.
Generally, income produced by property belongs to the person
who owns the property at the time the property produces such
income and does not originate with a donor who has made a
completed gift of that property prior to the production of such
income. Harvey v. United States, 185 F.2d 463, 467 (7th Cir.
1950); see also Estate of Howard v. Commissioner, 9 T.C. 1192,
1202-1203 (1947); sec. 20.2040-1(c)(5), Estate Tax Regs. Where a
surviving joint tenant receives property gratuitously from a
10The first checking account contained $26,244, and the
second checking account contained $3,480.
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