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After concessions by both sides,2 the issue for decision is
whether under section 212 petitioner may deduct payments she made
as ordered by a California court.
FINDINGS OF FACT
Some of the facts have been stipulated; the stipulations and
the stipulated exhibits are incorporated herein by this
reference.
When the petition was filed in the instant case, petitioner
resided in Santa Rosa, California.
The Trust
Petitioner is an income beneficiary of a testamentary trust
established by the will of petitioner’s grandfather, L.O. Ivey.
This testamentary trust is hereinafter sometimes referred to as
the Trust. L.O. Ivey’s will was admitted to probate in 1978.
2 Petitioner concedes that she is liable for an addition to
tax under sec. 6651(a) for 1993, except insofar as our
redetermination of the deficiency for that year reduces or
eliminates the base for calculation of this addition to tax.
Petitioner also concedes that she is not entitled to deductions
under sec. 162.
Respondent concedes that, if petitioner’s expenditures are
qualitatively deductible, then the amounts that petitioner
deducted are the correct amounts. In the pleadings respondent
suggested, and in the opening statement respondent plainly
contended, that allowance of the claimed deduction would
frustrate California public policy. On opening brief, however,
respondent concedes this issue.
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Last modified: May 25, 2011