- 18 -
After decedent’s death, the Trust filed its initial Form
1041, U.S. Income Tax Return for Estates and Trusts (Trust income
tax return), for the period April 2, 1994 (the date of decedent’s
death) through December 31, 1994. The Trust income tax return
showed, inter alia, in Schedule B (“Income Distribution Deduc-
tion”) distributable net income totaling $3,086, which consisted
of $3,006 of adjusted total income and $80 of adjusted tax-exempt
interest, and “Other amounts paid, credited, or otherwise re-
quired to be distributed” of $314,968.
In December 1996, approximately two years and eight months
after decedent’s death, decedent’s residence was sold for approx-
imately $440,000.
Respondent issued a notice of deficiency (notice) with
respect to decedent’s estate. In the notice, respondent disal-
lowed executors’ fees of $16,875 and other expenses totaling
$29,502, and allowed accountant’s fees of $840 and appraisal fees
totaling $885, that were claimed in Schedule L. In addition,
respondent allowed as Schedule L expenses $2,203 of trustees’
fees that were not claimed in Schedule L and $1,865 of attorney’s
fees that were claimed in Schedule J of the estate tax return.
OPINION
The estate bears the burden of demonstrating error in
respondent’s determinations and in establishing its entitlement
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011