- 17 - can obtain funds to pay those expenses only through sale of estate assets at a price below the normal market price) may be deductible as an administration expense under section 2053(a)(2). Estate of Todd v. Commissioner, 57 T.C. 288 (1971) (9-month loan); Estate of Thompson v. Commissioner, T.C. Memo. 1998-325 (series of five 1-year notes); McKee v. Commissioner, T.C. Memo. 1996-362 (note with term of 85 days); Estate of Graegin v. Commissioner, T.C. Memo. 1988-477 (loan with balloon payment in 15 years, which was the life expectancy of decedent’s surviving spouse, the beneficiary of a trust the assets of which could be used to repay part of the loan); see also Estate of Sturgis v. Commissioner, T.C. Memo. 1987-415 (term of loan not stated in the opinion; it was at least 3 years). Under New York law, interest incurred on a loan may be deductible as an administration expense if it is necessary and the estate lacks sufficient liquid assets. See, e.g., N.Y. Est. Powers & Trusts Law, sec. 11-1.1(b)(22) (McKinney 2003). The estate bears the burden of proof on all issues in dispute in this case.10 See Rule 142(a)(1). 10 We treat the estate’s failure to respond in answering brief to respondent’s argument in opening brief as the estate’s concession as to burden of proof. We agree with respondent’s contentions that (1) respondent raised no new matter in its answer; (2) the litigation guideline memo (Mar. 14, 1989) cited by respondent does not shift the burden of proof, see sec. 6110(k)(3); (3) Rauenhorst v. Commissioner, 119 T.C. 157 (2002), relating to the effect of a revenue ruling, is distinguishable; (continued...)Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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