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returns. No written partnership agreement exists, and no formal
records of the partners’ capital accounts or formal financial
statements exist.
A Form 706, United States Estate (and Generation-Skipping
Transfer) Tax Return, was filed for the decedent’s estate on
October 13, 2000. Schedule F, Other Miscellaneous Property Not
Reportable Under Any Other Schedule, of the estate tax return
indicated that the decedent owned only a 50-percent interest in
the “Fam Trust”, a partnership owned equally by the decedent and
Joseph S. Maniglia, and reported only 50 percent of the
property’s date of death value (as determined by the estate).5
Discussion
Respondent contends that the property was owned by the Fam-
Trust, of which the decedent was the sole beneficiary, and
therefore the entire value of the property is includable in the
decedent’s gross estate. The estate argues that the property was
owned by a partnership, and therefore only 50 percent of the
value of the property is includable in the decedent’s gross
estate.
5 Schedule F of the decedent’s estate tax return states:
“The decedent owns a 50% interest in the FAM Trust, a
partnership, EIN 04-2651063. The only asset held by the
partnership is real estate located at 7 Commonwealth Ave.,
Boston, MA. The date of death value of the real estate is
$1,184,790.” Only 50 percent ($592,395) of the value of the
property was reported as includable in the decedent’s gross
estate on Schedule F. The parties have stipulated that the date
of death value is $2,400,000.
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Last modified: May 25, 2011