-14- 6. Annual and Monthly FRV of the Residence The annual and monthly FRVs of the residence were as follows: Year Annual FRV Monthly FRV 1994 $17,280 $1,440 1995 16,560 1,380 1996 17,160 1,430 1997 17,880 1,490 1998 19,020 1,585 1999 21,060 1,755 2000 26,400 2,200 7. Decedent’s Payments as to the Residence During decedent’s leasehold, Funny Hats maintained the residence and made capital improvements. The dollar amounts of the capital expenses attributable to the residence were reported on the Federal estate tax return of decedent’s estate as $3,161 in 1995, $800 in 1996, and $4,225 in 1999, for a total of $8,186. The reported maintenance expenses for each year from 1994 through 2000 are set forth infra and aggregate $21,657. Decedent paid (directly or indirectly) most of the expenses connected with the residence. The partners of Funny Hats did not want to incur out-of-pocket costs as to the residence, and they asked decedent to pay “rent” greater than that stated in the lease agreements to the extent that the stated rent was insufficient to pay expenses connected with the residence.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011