Just prior to his death, Jameson, a prominent attorney, was sued by a former client. The suit

Question:

Just prior to his death, Jameson, a prominent attorney, was sued by a former client. The suit alleged malpractice on the part of Jameson and requested damages of $90 million. On filing the Form 706, the executor of Jameson's estate claimed a § 2053 deduction of $30 million as to the lawsuit. The $30 million amount was based on one of the many appraisals rendered by experts regarding the probable liability of the estate on the date of Jameson's death. Other appraisals varied by as much as $11 million. Upon audit of the Form 706 by the IRS, a deduction of $1 was allowed. After prolonged litigation and during appeal, the malpractice lawsuit was settled for $289,000. What should be the estate tax result in this case? Partial list of research aids:

Reg. §§ 20.2053-1(b)(4) and -4(a)(2) and (b)(2).

Estate of Gertrude H. Saunders, 136 T.C. 406 (2011).

Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

Question Posted: