- 7 - amount of income and expenses was allocated to decedent’s and Mr. Stewart’s interest in both properties. The parties did not sign a written agreement to reconcile the income and expenses, and Mr. Stewart’s testimony relating to an oral agreement was not credible. Indeed, Mr. Stewart’s accountant testified that he did not recall being informed about an agreement to reconcile the income and expenses. We do, however, conclude that Mr. Stewart and decedent had an implied agreement that decedent would retain the economic benefits of the 61st Street property. Decedent certainly met the terms of that agreement. Thus, the full value of the 61st Street property must be included in decedent’s estate. Sec. 2036(a); Estate of Hendry v. Commissioner, supra at 873. III. Property Tax Deduction Is Disallowed After decedent’s death, Mr. Stewart paid $10,153 in property taxes relating to decedent’s 51-percent interest in the 61st Street property. The estate contends that the estate is entitled to a deduction relating to property taxes paid by Mr. Stewart. At the time of her death, decedent did not have an outstanding property tax obligation relating to her 51-percent interest in the 61st Street property. Pursuant to section 2053(c)(1)(B), property taxes are not deductible by an estate unless the taxes are an enforceable obligation of the decedent at the time of her death. See also sec. 20.2053-6(b), Estate Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011