- 21 -21
included in the value of the gross estate. Sec. 2036(a); see
Burrow Trust v. Commissioner, supra at 1087-1088. Petitioner
filed the estate tax return on February 17, 1992. Respondent
issued a notice of deficiency on February 3, 1995, and a petition
was timely filed on May 1, 1995, thereby suspending the period of
limitations for assessment. All expenses of operating the cattle
ranch after decedent's death were therefore paid prior to the
expiration of the period of limitations for assessment under
section 6501. See Rev. Rul. 61-59, 1961-1 C.B. 418; cf. Gillum
v. Commissioner, T.C. Memo. 1984-631.8 Consequently, the only
question remaining in determining whether the expenses are
deductible under section 2053(b) is whether they satisfy the
requirements of section 2053(a).
Section 2053(a) requires that the deduction be allowable by
the laws of the jurisdiction under which the estate is being
administered. The relevant regulations further require that
deductions for administration expenses be "limited to such
expenses as are actually and necessarily incurred in the
administration of the decedent's estate". Sec. 20.2053-3(a),
Estate Tax Regs. This Court and the Court of Appeals for the
8 Regardless of petitioner's having filed a petition in this
Court, the period of limitations for assessment was also extended
by petitioner's election under sec. 6166 to pay the estate tax in
10 equal installments. Sec. 6503(d). Under the election, the
first installment was due on Feb. 17, 1997. All the expenses of
operating the cattle ranch were incurred between the date of
decedent's death and Apr. 30, 1996. The latter date was prior to
the expiration of the period of limitations for assessment, as
extended by the sec. 6166 election.
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