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gross estate, (b) the estate paid the costs at issue, and (c) the
costs would be deductible under section 2053(a)4 if Ripplestone
were a probate asset. Sec. 2053(b); Estate of Millikin v.
Commissioner, 125 F.3d at 342. Ripplestone is included in the
gross taxable estate and the estate paid the costs at issue.
Estate of Millikin v. Commissioner, 125 F.3d at 342. Thus,
petitioners may deduct the costs of maintaining and selling
Ripplestone if those costs would be deductible under section
2053(a) assuming that Ripplestone were a probate asset.
Petitioners contend that the costs at issue would be
deductible as administration expenses under section 2053(a)(2)
and (b) if Ripplestone were a probate asset. An expense is
deductible under section 2053(a)(2) and (b) if it is both (1) an
4 Sec. 2053(a) provides:
(a) General Rule.--For purposes of the tax imposed
by section 2001, the value of the taxable estate shall
be determined by deducting from the value of the gross
estate such amounts--
(1) for funeral expenses,
(2) for administration expenses,
(3) for claims against the estate, and
(4) for unpaid mortgages on, or any indebtedness
in respect of, property where the value of the
decedent's interest therein, undiminished by such
mortgage or indebtedness, is included in the value of
the gross estate,
as are allowable by the laws of the jurisdiction, whether
within or without the United States, under which the estate
is being administered.
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