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
regulations.
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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