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Donald Hendrickson, there is no evidence that more than a de
minimis portion of the proceeds was in fact used for decedent’s
benefit.
Second, no claim was filed against decedent's estate with
respect to the Land Bank loan by either the Land Bank or any of
decedent's co-obligors.
Third, payments have continued to be made on the Land Bank
loan since decedent's death. In fact, as of March 1, 1998, the
balance of the Land Bank loan had been reduced to $636,814 from
the $825,068 balance at decedent's death. Petitioner has not
claimed that it made or contributed to any of these payments.
Fourth, neither decedent nor Garry's estate deducted any of
the interest payments on the Land Bank loan. This suggests that
the parties to the loan did not regard decedent as a real obligor
of the loan.
C. Conclusion Re Unpaid Mortgage Deduction
In Estate of Theis v. Commissioner, supra, we were required
to consider the availability of a deduction for joint and several
debt, where the security for the loan was included in the
decedent's estate. We held that no unpaid mortgage deduction was
allowable, because the decedent was in fact a guarantor or
accommodation party, rather than a true co-obligor. See id. at
748-751.
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