Estate of Frances Elaine Freedman, Deceased, Robin Elaine Carnette, Personal Representative, (2007)
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Estate of Frances Elaine Freedman, Deceased, Robin Elaine Carnette, Personal Representative, (2007)
T.C. Memo. 2007-61
UNITED STATES TAX COURT ESTATE OF FRANCES ELAINE FREEDMAN, DECEASED, ROBIN ELAINE CARNETTE, PERSONAL REPRESENTATIVE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 6416-04. Filed March 19, 2007.In late 1999, D received stock in ECNC in exchange for her interest in a business venture. In January of 2000, D contributed the stock to a recently opened joint brokerage account titled in her name and that of her son. Shares of ECNC were thereafter sold between late January and early March of 2000, generating substantial capital gains.Held: D, and not her son, is considered under State law to be the owner of all ECNC stock in the joint account and is therefore taxable on the full amount of the gain arising from its sale.Joe M. Gonzalez, for petitioner. Michael A. Pesavento, for respondent.MEMORANDUM FINDINGS OF FACT AND OPINION WHERRY, Judge: Respondent determined a Federal income tax deficiency in the amount of $567,864 and a penalty pursuant to section 6662 of $113,572.80 with respect to the 2000 taxable year of Frances Elaine Freedman (decedent).1 After concessions, to be explained in greater detail below, the principal issue for decision is what portion of gain from certain stock sales is taxable to decedent in 2000.FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulations of the parties, with accompanying exhibits, are incorporated herein by this reference. Decedent was a resident of the State of Florida when she died testate in Sint Maarten (also referred to as St. Martin), Netherlands Antilles, on June 17, 2003. Her estate was admitted to probate in the Circuit Court for Hernando County, Florida, and her daughter, Robin Elaine Carnette (Ms. Carnette), was appointed personal representative. The instant tax case was subsequently filed on behalf of the Estate of Frances Elaine Freedman (the estate), at which time Ms. Carnette resided in Brunswick, Georgia.Family Background Decedent was born on June 2, 1933. Her formal education ended upon dropping out of high school during eleventh grade. She thereafter married and divorced several times. Among her children were half-siblings Ms. Carnette and Ernest Greene (M...See the full content of this document
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