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pay estate tax and involving delay in entry of decision
reviewed.
Gregory Arnold and John W. Ambrecht, for petitioner.
Donna F. Herbert, for respondent.
MEMORANDUM OPINION
GERBER, Judge: Petitioner moved to stay the proceedings
(delay entry of decision) in order to be able, under section
2053,1 to deduct interest on a loan that was incurred to pay the
estate tax. Petitioner also seeks to deduct the attorney’s and
trustee’s fees incurred in the pursuit of resolving the
stay/interest issue.2 The interest is payable over 20 years.
Although there is no objection to the deduction of the fees,
respondent objects to the deduction of the interest because
“Petitioner has not proven or demonstrated that the interest
expense which it seeks to deduct over a twenty year time period
is properly deductible under the Internal Revenue Code.”
1 Section references are to the Internal Revenue Code as
amended and in effect for the period under consideration.
2 With the exception of the current controversy, all other
issues have been agreed on by the parties. The estate tax
liability has been paid, and this case is ready to be finalized
by the entry of a decision. Petitioner claims that the allowance
of deductions for the interest in question will result in a
refund of estate tax already paid.
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