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benefits from the estate, the sole person listed was Bar in the
amount of $1 million. Schedule E, Jointly Owned Property, of the
return listed $1,065,420.63 of qualified joint interests.
Schedule F, Other Miscellaneous Property Not Reportable Under Any
Other Schedule, of the return listed two safe deposit boxes that
decedent and Jo held jointly. On Schedule M, Bequests, etc., to
Surviving Spouse, of the return, the “No” box was checked next to
“Election Out of QTIP Treatment of Annuities”. On Form 712, Life
Insurance Statement, attached to the return, Jo was listed as the
owner and beneficiary of life insurance on decedent’s life.
OPINION
Section 2001 imposes a tax on the transfer of the taxable
estate of all decedents who are citizens or residents of the
United States. The amount of the tax is determined, in part, by
the value of the taxable estate. Sec. 2001(b). Section 2051
defines the value of the taxable estate as the gross estate less
deductions. “For estate taxes, as for income taxes, ‘Deductions
are a matter of legislative grace, and a taxpayer seeking the
benefit of a deduction must show that every condition which
Congress has seen fit to impose has been fully satisfied.’”5
5 For the first time in the reply brief, the estate raises
the issue of respondent’s bearing the burden of proof pursuant to
sec. 7491(a), as amended. Generally, we will not consider an
issue that is raised for the first time on brief. See Foil v.
Commissioner, 92 T.C. 376, 418 (1989), affd. 920 F.2d 1196 (5th
Cir. 1990); Markwardt v. Commissioner, 64 T.C. 989, 997 (1975).
(continued...)
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