Estate of Ona E. Hendrickson - Page 67





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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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