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After concessions,2 the issues presented are:3
2In the estate tax notice of deficiency, respondent
determined that the value of a $250,000 St. Francis Hospital,
Inc. bond was includable in Sylvia Gore’s (decedent’s) gross
estate under sec. 2038, or, alternatively, under either sec. 2031
or 2033. In the stipulation of facts, petitioner concedes that
the bond is includable in decedent’s gross estate.
In the estate tax notice of deficiency, respondent
disallowed a deduction of $19,084 for a note payable from
decedent. In the stipulation of facts, petitioner concedes that
the estate is not entitled to deduct $19,084 as a debt of
decedent.
In the explanation of adjustments section of the estate tax
notice of deficiency, respondent determined that the fair market
value of the Gore Family Limited Partnership (GFLP) was
$4,997,280. However, respondent used $4,997,290 as the value of
GFLP in computing the transfers during decedent’s life reflected
in the explanation of items. Although petitioner raised the
issue of this $10 discrepancy in the petition, petitioner
abandoned the issue in petitioner’s trial memorandum.
During the audit in this case, a $65,000 Grand River Dam
Authority bond that had not been reported as an asset of the
estate for estate tax purposes was discovered. The parties agree
that the Grand River Dam Authority bond was not transferred to
GFLP and is includable in decedent’s gross estate under sec.
2033.
3Petitioner has raised two additional issues, but we need
not decide them in this opinion:
(1) Petitioner raised the issue of whether respondent
allowed the maximum credit for State death tax under sec. 2011.
The estate claimed a credit of $56,813 for State death taxes on
Form 706, United States Estate (and Generation-Skipping Transfer)
Tax Return, and respondent has not disallowed that credit.
Petitioner represents that Oklahoma has issued alternative orders
assessing additional death tax liabilities, and resolution of the
estate’s State death tax liability is pending before the Oklahoma
Tax Commission. Respondent correctly notes that the maximum
amount of credit allowed under sec. 2011 depends on the size of
the adjusted taxable estate for Federal estate tax purposes.
Respondent represents that he will allow an additional credit for
(continued...)
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