Estate of Albert Fratini, Deceased, Marion Friedeberg, Personal Representative - Page 28

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          for the Onondaga property.  In the notice of deficiency,                    
          respondent limited the deductions to 50 percent of each of the              
          outstanding mortgages.                                                      
               Section 2053(a)(4) generally provides that a deduction is              
          allowable for the amount of unpaid mortgage on property where the           
          value of decedent's interest therein is included in the value of            
          the gross estate.  Section 20.2053-7, Estate Tax Regs., provides            
          that a deduction is allowed if the value of the property,                   
          undiminished by the amount of the mortgage or indebtedness, is              
          included in the value of the gross estate.  Generally, in the               
          case of joint tenancy real property, the amount deductible from a           
          decedent's estate is limited to the portion of the mortgage which           
          the estate is obligated to pay.  Parrott v. Commissioner, 30 F.2d           
          792 (9th Cir. 1929), affg. 7 B.T.A. 134 (1927).                             
               Both decedent and Ms. Friedeberg signed the note and deed of           
          trust securing the note for the Dolores property.  Similarly,               
          both decedent and Ms. Friedeberg signed the promissory note as              
          part of the purchase of the Onondaga property.  Petitioner does             
          not argue that under California law the estate is ultimately                
          obligated to pay more than one-half of the outstanding date-of-             
          death mortgage balances upon the Dolores and Onondaga properties.           
          Therefore, we sustain respondent's determination that petitioner            
          is entitled to deduct 50 percent of the date-of-death balances of           

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