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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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