Court Rejects Estate's Uncertain State Tax Deductions

In Marshall Naify Revocable Trust et al. v. United States, the U.S. District Court for the Northern District of California denied deductions for state capital gains tax finding that "the value of the disputed claim was not ascertainable with reasonable certainty on the date of the decedent's death."  The estate attempted to claim a $47 million deduction for taxes that it did not pay but that it could be subject to.

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.