§2054 — Losses
11 citing cases
Statute Text — 26 U.S.C. §2054
For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate losses incurred during the settlement of estates arising from fires, storms, shipwrecks, or other casualties, or from theft, when such losses are not compensated for by insurance or otherwise.
Treasury Regulations
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Treas. Reg. §20.2054-1Deduction for losses from casualties or theft
A deduction is allowed for losses incurred during the settlement of the estate arising from fires, storms, shipwrecks, or other casualties, or from theft, if the losses are not compensated for by insurance or otherwise. If the loss is partly compensated for, the excess of the loss over the compensation may be deducted. Losses which are not of the nature described are not deductible. In order to be deductible a loss must occur during the settlement of the estate. If a loss with respect to an asset occurs after its distribution to the distributee it may not be deducted. Notwithstanding the foregoing, no deduction is allowed under this section if the estate has waived its right to take such a deduction pursuant to the provisions of section 642(g) in order to permit its allowance for income tax purposes. See further § 1.642(g)-1.
11 Citing Cases
Further, our jurisprudence regarding section 165(c)(3) is, unlike that of section 2054 before Estate of Heller, clear and well settled.
Section 2054, however, allows for a broader nexus (i.e., between the theft and the incurred loss) than does respondent's narrow interpretation.
, is deemed to have conceded that commission of $250,000 paid to Madelyn.M.: Hurley, the original executrìx of decedent's estate, is not deductible as an administrative expense pursuant to sec. 2053 (a) (2) nor deductible as a theft loss pursuant to sec. 2054. 3. Whether payments made by decedent's estate to attorneys representing the Glovers, and payments, if any, to be made to Mr. Glover (one of the residuary beneficiaries) for time and money spent in discovering the misappropriation of decede
Section 2054 allows a deduction for certain losses. Section 2055 allows a deduction for certain transfers for public, charitable, or religious uses. Section 2056 allows a deduction for certain bequests to a surviving spouse. Nowhere in the Code or regulations thereunder does it say that an estate's underpayment is based solely on deductions that ap
Section 2054 allows a deduction for certain losses. Section 2055 allows a deduction for certain transfers for public, charitable, or religious uses. Section 2056 allows a deduction for certain bequests to a surviving spouse. Nowhere does the Code or regulations thereunder say that an estate’s underpayment is based solely on deductions that appear o
Petitioner argues that section 2053 (there being no section 2054 expenses) does not "allow" deductions.
n the amount of $274,505.09 for the value of bonds, interest on bonds, or the proceeds of bonds, owned by the estate and received from the estate by John T. Lynch, Jr. The Petitioner claims that such amount is deductible as a theft loss, under Code section 2054. The Respondent argues that this item is deductible, if at all, only as an expense of administration, under Code section 2053(a)(2), and as such is limited to the amount allowable under the laws of Pennsylvania, where the estate is being
Whether petitioner, pursuant to section 2054, is entitled to deduct from the gross estate $300,000 as a theft loss.