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decision is whether the estate is entitled to the family-owned
business deduction under section 2057.2 In response to an
argument respondent made in his opening brief, the estate has
conceded that it cannot prevail under the statute because it
fails to meet one of the substantive requirements necessary to
obtain the deduction. However, the estate contends that (1) the
argument raised in respondent’s brief contradicts the stipulation
of facts, and (2) respondent prejudiced the estate by raising a
new issue on brief. We hold that respondent did not raise a new
issue and that the estate may not rely on the stipulation of
facts to preclude respondent’s argument.
Background
The parties submitted this case fully stipulated under Rule
122. The stipulations of facts and the attached exhibits are
incorporated herein by this reference. Ronald G. Keeton
(decedent), died on July 19, 1999. Decedent was a citizen and
resident of the United States at the time of his death. The
record does not reflect where in the United States decedent lived
at the time of his death. The parties have stipulated that the
legal address of decedent’s personal representative is in Panama
City, Florida.
2Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the date of decedent’s
death, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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