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that no such transfer took place. Moreover, the record
adequately demonstrates that no bona fide debt owed by GFLP to
decedent existed on the date of decedent’s death. Accordingly,
the value of the gross estate must be reduced by $46,664.
VI. Whether the Value of the Smith Barney Investment Account Is
Includable in Decedent’s Gross Estate
Petitioner argues that including the proceeds of the Smith
Barney account in decedent’s gross estate would result in taxing
the same funds twice because that amount was deducted from the
alleged debt GFLP owed to decedent, which increased the overall
value of GFLP. Petitioner relies solely on the GFLP accounting
records to support petitioner’s position.
Respondent argues that petitioner has not provided any
detail regarding the items giving rise to the alleged debts
between GFLP and its partners. Respondent contends further that
the amount is includable in the gross estate under section 2033
because the value of the Smith Barney account was not reported on
decedent’s estate tax return or included as an asset of GFLP in
valuing GFLP or its partnership interests.
The estate did not report the value of the Smith Barney
account as part of decedent’s gross estate on Form 706.
Therefore, we sustain respondent’s determination that $102,139,
the value of the Smith Barney account, is includable in the gross
estate under section 2033.
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