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Ad valorem tax may be deducted from the value of the gross
estate if the tax is an enforceable obligation of the decedent on
the date of the decedent’s death and is allowable under State
law. Sec. 2053(a)(3), (c)(1)(B); sec. 20.2053-6(b), Estate Tax
Regs. Under Oklahoma law, only ad valorem tax that is a lien on
a decedent’s property on the date of the decedent’s death is an
enforceable obligation of the decedent on that date. Okla. Stat.
Ann. tit. 68, sec. 808(a) (West 2001). Ad valorem tax becomes a
lien on property on the date the tax becomes due and payable.
Okla. Stat. Ann. tit. 68, sec. 3101 (West 2001). Ad valorem tax
for each fiscal year becomes due and payable on the first day of
November. Okla. Stat. Ann. tit. 68, secs. 2804, 2913 (West
2001).
On June 12, 1997, no enforceable obligation existed with
respect to decedent’s 1997 ad valorem tax. The 1997 ad valorem
tax did not become due and payable and a lien against decedent’s
real property until November 1, 1997. Ms. Powell paid the 1997
ad valorem tax on decedent’s home on November 24, 1997.
Petitioner has not offered any evidence to substantiate the
amount of any allowable deduction. Moreover, the Oklahoma
statute cited by the estate is inapplicable here because there
was no conveyance of decedent’s property in 1997. Okla. Stat.
Ann. tit. 68, sec. 2912 (West 2001). The Oklahoma cases cited by
petitioner are equally inapplicable, as they relate to whether a
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Last modified: November 10, 2007