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Petitioner's estate tax return reported four tracts of land
as being subject to a mortgage, with an aggregate reported value
of $101,451. Petitioner's brief asserts that the mortgage
referred to was the Land Bank mortgage. However, by comparing
the description of the four tracts on petitioner's estate tax
return with the Land Bank mortgage, we have found that only two
of the tracts reported on the return-–tract 1102, containing
13.33 acres, and tract 1103, containing 26.66 acres--were in fact
subject to the mortgage.
With respect to the value of the tracts subject to the Land
Bank mortgage, petitioner's return reported a separate value for
only one of these tracts (a value of $22,661, for tract 1103).
The return reported a combined value of $78,790 for three other
tracts, including tract 1102, the second tract subject to the
Land Bank mortgage. By assuming that these three tracts had the
same per-acre value, we have estimated that the value of tract
1102 was $9,477.
For all these reasons, we have found that only $32,138 of
the security for the Land Bank loan was included in decedent's
estate. Therefore, petitioner's section 2053(a)(4) deduction
could in no event exceed $32,138--even if the other requirements
set forth below were satisfied. See Estate of Fawcett v.
Commissioner, supra at 897.
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