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Petitioners point out that it was highly likely that the
estate would be audited. However, under the circumstances of
this case, this does not mean that it is likely that the estate
would be liable for more estate taxes than it reported and paid.
We conclude that the estate did not face a significantly
larger tax liability than it and Trust B had paid.
Petitioners contend that Estate of Papson v. Commissioner,
73 T.C. 290 (1979), establishes that the estate can deduct the
expenses of maintaining and selling Ripplestone after March 16,
1990. We disagree.
In Estate of Papson v. Commissioner, supra, we held that an
estate may deduct as an administration expense under section
2053(a)(2) the commission paid to a broker to obtain a
replacement tenant in a shopping center owned by the estate. The
primary tenant had left the shopping center after filing for
bankruptcy. The estate in that case was unable to pay estate
taxes partly because the primary tenant had left. We held that
the estate could deduct the cost of replacing the bankrupt tenant
because otherwise the estate could not pay the estate taxes.
In contrast, here, the value of Ripplestone was less than
the estate had reported, and the estate overpaid estate taxes.
Estate of Papson v. Commissioner, supra, does not help
petitioners.
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