Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 20

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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                
                    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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