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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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