- 26 - entitled to tax benefit resulting from sale of capital asset); McKee v. Commissioner, 35 B.T.A. 239, 242 (1937) (trustees who realized tax savings by selling, rather than redeeming, matured bonds acted in the best interests of the trusts). We do not substitute our judgment for decisions of the executors to complete the restructuring in January 1999. See Estate of Todd v. Commissioner, 57 T.C. 288 (1971); Estate of Thompson v. Commissioner, T.C. Memo. 1998-325; McKee v. Commissioner, T.C. Memo. 1996-362; Estate of Sturgis v. Commissioner, T.C. Memo. 1987-415. Second, the executors did not foresee the decrease in Gilman Building Products’ annual net positive cashflow from more than $40 million per year in years before 2000 to $3.5 million in 2000. The decline in Gilman Building Products’ financial condition contributed to HG’s inability to pay the estate nearly $23 million of interest due in 2002. In light of the unforeseen decline in Gilman Building Products’ financial condition and HG’s and its subsidiaries’ inability to fully pay interest due on the notes in 2002, it was necessary for the estate to borrow funds in 2002. 6. Whether the Farm Credit Loan Was Unnecessary Because the Executors Had Elected To Pay Estate Tax in 10 Annual Installments The executors elected on April 1, 1999, to pay Federal and New York estate taxes in 10 annual installments beginning inPage: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Next
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