Court Opinion

ID: 9636821
Source: CourtListenerOpinion
Date Created: 2023-08-22 14:44:29.372+00
Date Added: 2024-06-11T18:09:50.036950
License: Public Domain

HOLMES, Circuit Judge
(dissenting).
The only question for decision is whether there was substantial evidence to support the finding of the Tax Court that the calendar years 1937, 1938, and 1939 did not constitute a period of administration or settlement of the estate.
• Herman Frederich died on January 6, 1934.. His individual debts were paid in that. year. At the close of 1934, the partnership liabilities were $14,624.37; at the dose of 1935, they were $9,966.53; and at the .close of 1936, they were $30,931.95. During these years, the partnership earnings - were roughly $43,200, $41,200, and $71,200, respectively. Surely these earnings were adequate in each year to defray the obligations of the partnership without fear of forced liquidation.
Letters of administration were not issued upon the decedent’s estate until December 21, 1938. Thereafter, the only administrative^ action taken prior to October, 1941, was the filing of an estate tax return. After the close of 1934, the only act remaining to be performed to complete the administration of the estate, except for the filing of the estate tax return, was the distribution of the estate to the heirs at law. These duties did not reasonably require six years to perform.
The Tax Court found that the time required for performance of the usual administrator’s duties did not extend into the taxable years here involved. This finding is entitled to finality, since it is amply sustained by the record. The probate court did not determine the issue here involved; the question was not presented to it; the issue was not in controversy.
I think the judgment appealed from should be affirmed.