Estate of Graciano V. Espinoza, Deceased, Elvira Expinoza, Executrix - Page 12

                                       - 12 -                                         
          If decedent was not worth much, what was decedent’s source for              
          the $7 million used in 2000 for his gambling activities?  As                
          noted, decedent apparently owed the Nevada casinos only $70,000,            
          suggesting that decedent had access to millions of dollars to               
          either play the slot machines with cash or to pay off the casinos           
          to the extent the casinos allowed decedent to play the slot                 
          machines on credit (over the $70,000 decedent owed the casinos).            
               In our opinion, neither the fact that decedent incurred                
          large gambling losses nor the fact that decedent filed for                  
          bankruptcy establishes for decedent’s estate a negative net worth           
          on the date of death.                                                       
               In 2000, decedent realized large gambling winnings and large           
          gambling losses, but he reported nominal wage income and had                
          significant cash on hand to use for the purchase of an                      
          automobile.  These facts suggest to us substantial assets, and we           
          believe respondent to have been reasonable in the request for               
          more specific information about decedent’s net worth, which                 
          information has not been provided.                                          
               We commend trial counsel for negotiating a favorable                   
          settlement with regard to decedent’s claimed gambling losses.               
          That favorable settlement or concession by respondent, however,             
          does not necessarily translate into an award of administrative              
          costs against respondent, even the relatively modest amount                 
          sought herein.  See Sokol v. Commissioner, 92 T.C. 760, 767                 
          (1989).                                                                     




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011