- 75 -
redetermining of the fair market value of the class A voting stock
and charging the determined estate tax deficiencies against the
portion of the estate (the residue) passing to the wife. In
calculating the amount of the marital deduction, respondent gave no
consideration to the fact that the transfer tax liability payable
to the State of Idaho with respect to the class A voting stock
bequeathed to the credit shelter trust is chargeable against the
trustees.
Under section 2011, an estate may claim a credit against the
Federal estate tax for State transfer and inheritance taxes paid.
This credit generally applies to State and inheritance taxes paid
and claimed within 4 years of the filing of the original estate tax
return. See sec. 2011(c). Where the taxpayer has filed a petition
with this Court, this 4-year period is extended for 60 days after
the decision of this Court becomes final. See sec. 2011(c)(1).
Here, no transfer or inheritance taxes to the State of Idaho
have yet been paid. See sec. 20.2011-1(c)(2), Estate Tax Regs.,
regarding proof of payment. Accordingly, respondent correctly did
not include in the computation of the amount of the marital
deduction an amount of State transfer and inheritance taxes
chargeable against the bequest of the class A voting stock to the
trustees of the credit shelter trust.
The amount of the marital deduction must be recalculated on
the basis of our determination as to the value of the class A
voting stock passing to the trustees of the credit shelter trust.
Hence, a Rule 155 computation is required. In calculating the
Page: Previous 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 NextLast modified: May 25, 2011