Estate of Timothy J. Tehan, Deceased, Timothy R. Tehan, Executor - Page 12

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               On June 29, 2001, the Orphans’ Court issued an order (June             
          29, 2001 order) approving, inter alia, the $32,000 of personal              
          representative’s commissions that Mr. Tehan requested in the                
          consent petition.7  Pursuant to that order, on October 15, 2004,            
          the estate issued a $32,000 check to Mr. Tehan.  Mr. Tehan                  
          deposited that check into his personal savings account on Novem-            
          ber 9, 2004, three days before the trial was held in this case.             
               In the notice of deficiency (notice) that respondent issued            
          with respect to decedent’s estate, respondent determined, inter             
          alia, to include in decedent’s gross estate under section                   
          2036(a)(1) decedent’s residence that respondent determined had a            
          value of $310,000 on the date of decedent’s death.8  In the                 
          notice, respondent also determined, inter alia, to disallow as              
          deductions (1) $20,822 of the $32,000 claimed as personal repre-            
          sentative’s commissions and (2) $2,500 of the $10,000 claimed as            
          attorney’s fees.9                                                           

               7In the June 29, 2001 order, the Orphans’ Court also ap-               
          proved the $7,500 of attorney’s fees requested in the consent               
          petition.                                                                   
               8In the stipulation for trial, respondent stipulated that              
          the date-of-death value of decedent’s residence was $275,000.               
               9In the stipulation for trial, the estate conceded, inter              
          alia, respondent’s determinations to increase decedent’s taxable            
          estate by the amounts of $10,000 and $1,896, respectively, for a            
          note receivable and a State income tax refund.  As a result of              
          those concessions, on brief respondent concedes that the amount             
          of personal representative’s commissions that respondent deter-             
          mined in the notice to allow as a deduction under sec. 2053                 
                                                             (continued...)           





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