Estate of Albert Fratini, Deceased, Marion Friedeberg, Personal Representative - Page 27

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          what extent, a fractional interest discount or lack of                      
          marketability discount should be applied to a decedent's property           
          held in joint tenancy with right of survivorship.  In Estate of             
          Young v. Commissioner, supra at 315-316, we stated:                         

                    Under the scheme of section 2040(a), the amount                   
               includable in a decedent's gross estate does not depend                
               on a valuation of property rights actually transferred                 
               at death, or on a valuation of the actual interest held                
               by the decedent (legal title); instead, decedent's                     
               gross estate includes the entire value of property held                
               in a joint tenancy by him and any other person, except                 
               to the extent the consideration for the property was                   
               furnished by such other person.  * * *  Section 2040(a)                
               provides an artificial inclusion of the joint tenancy                  
               property:  the entire value of the property less any                   
               contribution by the surviving joint tenant.  Except for                
               the statutory exclusions in section 2040(a), there is                  
               no further allowance to account for the fact that less                 
               than the entire interest is being included.  [Citation                 
               and fn. ref. omitted.]                                                 

          Applying the same reasoning to the instant case, we conclude that           
          petitioner is not entitled to fractional interest discounts on              
          any of the properties based on joint ownership with Ms.                     

          Section 2053 Deductions for Unpaid Mortgages                                

               On Schedule K of Form 706, petitioner claimed deductions               
          related to mortgages on the Dolores and Onondaga properties of              
          $42,607 and $70,969, respectively.  Petitioner allocated the                
          mortgages on the properties in amounts equal to the section 2040            
          inclusion percentages of 53.67 for the Dolores property and 55.32           

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