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convert expenses of the enterprise to estate expenses. The
estate cannot have it both ways. See Sharvy v. Commissioner, 67
T.C. 630, 641-642 (1977), affd. 566 F.2d 1118 (9th Cir. 1977);
L & L Marine Serv., Inc. v. Commissioner, T.C. Memo. 1987-428;
Biggs v. Commissioner, T.C. Memo. 1968-240, affd. 440 F.2d 1 (6th
Cir. 1971). Expenses related to the GIC assets were not estate
expenses after the estate transferred those assets to HG. See
Deputy v. Du Pont, 308 U.S. 488, 493-494 (1940) (taxpayer may
deduct own expense and not that of another); Estate of Grant v.
Commissioner, 294 F.3d at 354 (Court of Appeals denied deduction
under section 2053 of administration expenses incurred to
administer assets of a trust but allowed deduction of
administration expenses incurred to administer assets of the
estate).
b. Whether Bergreen’s Compensation Was an Obligation
of the Estate
The estate contends that $17 million of the Farm Credit loan
was borrowed to compensate Bergreen for services performed for
the estate. The estate also contends that amount was an
administration expense of the estate and was owed to Bergreen
under the will. We disagree.
Article 10 provides that Bergreen is not to receive
commissions or other fees for acting as executor and that he was
to continue to be compensated by the Gilman businesses for
services rendered after decedent died as he had been before
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