Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 17

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          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;             

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