Estate of Delores E. Lasarzig, Deceased, Wells Fargo Bank, Trustee - Page 1

                                 T.C. Memo. 1999-307                                  

                               UNITED STATES TAX COURT                                

                      ESTATE OF DELORES E. LASARZIG, DECEASED,                        
                      WELLS FARGO BANK, TRUSTEE, Petitioner v.                        
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 17956-97.            Filed September 16, 1999.              

                    P moved to stay the proceedings (delay entry of                   
               decision) for up to 20 years so that the estate’s                      
               beneficiaries, who were already in possession of the                   
               estate’s assets, could borrow against, as opposed to                   
               selling, the assets because the beneficiaries believed                 
               that market conditions were unfavorable.  The delay was                
               to permit the deduction of interest on a loan incurred                 
               by the estate’s beneficiaries (or by their trusts) in                  
               order to pay the estate tax owed by the estate.  In all                
               other respects, the parties had agreed on all of the                   
               issues raised, and a decision could be entered.  At the                
               time of P’s motion the estate tax liability had been                   
               paid.  R objects to P’s motion on the ground that the                  
               interest in question is not deductible by the estate                   
               under sec. 2053, I.R.C., and the underlying                            
                    Held:  P’s motion is denied because of failure to                 
               show entitlement to interest deductions under sec.                     
               2053, I.R.C.  Estate tax cases involving borrowing to                  

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