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Commissioner, 198 F.3d 515 (5th Cir. 1999), reversing our
decision in 108 T.C. 412 (1997), regarding the deductible amount
of a claim against the estate for purposes of section
2053(a)(3),1 vacating our judgment, and remanding for a
determination of the value of the claim against the estate as of
decedent’s date of death.
FINDINGS OF FACT
We stated the detailed and intricate facts of this case in
our original opinion. Estate of Smith v. Commissioner, 108 T.C.
412 (1997). We summarize the relevant facts from that opinion
and set forth additional findings of fact for purposes of
deciding the issue on remand.
General Facts
On April 23, 1970, Algerine Allen Smith (decedent), as
lessor, entered into an oil, gas and mineral lease with Humble
Oil & Refining Co. (Humble). Pursuant to this lease agreement,
decedent retained a royalty interest in oil and gas production
obtained from an 80-acre tract of land in Wood County, Texas. On
April 23, 1970, Jessamine and Frankie Allen, decedent’s aunts,
also entered into oil and gas leases with Humble, pursuant to
which they retained royalty interests from the oil and gas
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect as of the date of decedent’s
death, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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