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Interest Deductions Claimed by Garry's Estate or Decedent
With Respect to Land Bank Loan
Garry's estate did not claim any interest deductions on its
Federal fiduciary income tax returns for most of its fiscal years
ending from 1981 through 1994. The estate claimed an interest
deduction in excess of $3,000 for only one of these years, the
year ending February 1981.
Similarly, decedent's Federal individual income tax returns
claim no interest deductions for any of the years 1989-93 (the
only years for which decedent's returns are part of the record).
According to the Land Bank's records, the amount of interest
paid on the Land Bank loan in the year ending March 1, 1981, was
$34,952; the amount of interest paid in each of the years ending
from March 1, 1982, to March 1, 1994, varied from $80,523 to
$118,476.
Neither Garry's estate nor decedent claimed any Federal
income tax deductions for the interest on the Land Bank loan with
respect to their 1979-93 taxable years.
Security for Land Bank Loan Included in Decedent's Estate
The outstanding balance of the Land Bank loan at decedent's
death was $825,068.
Decedent gave away most of her interest in the family farm
land during 1979-93. Therefore, at the time of her death
decedent owned little of the land securing the Land Bank loan.
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