Waddington's Estate, In re, No. 55061
| Court | United States State Supreme Court of Iowa |
| Writing for the Court | REYNOLDSON |
| Citation | 201 N.W.2d 77 |
| Parties | In the Matter of the ESTATE of John A. WADDINGTON, Deceased. John R. SINCLAIR, Executor of the Estate of John A. Waddington, Deceased, Appellee, v. IOWA DEPARTMENT OF REVENUE, Appellant. |
| Decision Date | 19 September 1972 |
| Docket Number | No. 55061 |
Page 77
John R. SINCLAIR, Executor of the Estate of John A. Waddington, Deceased, Appellee,
v.
IOWA DEPARTMENT OF REVENUE, Appellant.
Richard C. Turner, Atty. Gen., George W. Murray, Sp. Asst. Atty. Gen., John A. Pabst and Harry M. Griger, Asst. Attys. Gen., for appellant.
Thomas C. Teas, Mason City, for appellee.
Page 78
REYNOLDSON, Justice.
This appeal presents the single question whether deductions for the purpose of computing inheritance tax on a domestic estate are limited to those specifically enumerated in § 450.12(1), The Code.
This decedent, who died in 1934, left a will creating a life estate in real property. Upon termination of the life estate, the property was to be sold and the proceeds distributed to certain beneficiaries described as 'remaindermen.' In the estate proceedings, tax on the 'remainder' interest was deferred. Section 450.46, The Code.
When the life tenant died, on March 25, 1970, the deferred interest was reported to the department as real estate. July 8, 1970, the real estate, comprised of two farm land tracts, was appraised at $102,000, to which no objections were taken within the statutory 20-day period. See § 450.31, The Code. Thereafter executor filed an amendment reporting the interest to be personal property, and filed a final inheritance tax return which assigned the gross value of the property its $94,000 sale price and claimed deductions for advertising and abstract costs and 1970 real estate taxes due in 1971. These expenses were incurred in sale of the real estate pursuant to court order implementing the distribution required by the will.
After the department denied the reduced valuation and the above deductions, executor filed this 'Petition for Determination of Inheritance Tax.' Trial court held the appraised value of the real estate, not its sale price, furnished proper basis for computing the tax. Executor does not appeal from that determination. However, trial court allowed the taxes and sale expenses as proper deductions. From this part of the decision, involving only $146.18 in tax, the department sought and obtained from trial court the necessary certification to appeal. Rule 333, Rules of Civil Rpocedure. The small amount involved may account for appellee's unfortunate failure to assist this court with a brief and argument.
I. Reference to pertinent provisions of the inheritance tax chapter is unavoidable. Two code sections are particularly relevant:
'450.37 Market value. The appraised value of the property shall in all cases be its market value in the ordinary course of trade, and in domestic estates the tax shall be calculated thereon after deducting the Debts as defined herein.' (Emphasis added.)
and,
'450.12 Deduction of debts. There shall be deducted from the Gross value of the estate as fixed by the inheritance tax appraisers appointed under the provisions of this chapter, or as fixed by the court, the Debts defined as follows:
1. From the estate of such decedent who at the time of his death was domiciled within this state, there shall be deducted the debts owing by the decedent at the time of his death, the local and state taxes due from the estate in January of the year of his death, and federal taxes owing by the decedent or paid from the estate on Iowa property, a reasonable sum for funeral expenses, temporary allowance for the window and children under fifteen years of age as granted by the probate court or judge thereof, court costs, the costs of appraisement made for the purpose of assessing the inheritance tax, the fee of executors, administrators, or trustees as allowed by order of court, the amount paid by the executor or administrator for a bond, the attorney fee...
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Bliven's Estate, Matter of, No. 2--57194
...Page 370 It is also understood tax exemption statutes are to be strictly construed in favor of taxation. See In re Estate of Waddington, 201 N.W.2d 77, 79 (Iowa 1972) and citations; Wisconsin Evangelical Lutheran Synod v. Regis, 197 N.W.2d 355, 356 (Iowa III. At the outset Code § 450.2 prov......
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State v. Binkley, No. 55296
...exclusio alterius (express mention of one thing implies exclusion of others), is applicable in this case. See In re Estate of Waddington, 201 N.W.2d 77 (Iowa, filed Sept. 19, 1972); North Iowa Steel Company v. Staley, 253 Iowa 355, 112 N.W.2d 364 (1961). By specifically requiring use of san......
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State v. Johnson, No. 56403
...mention of one thing implies exclusion of others. State v. Binkley, 201 N.W.2d 917, 919--920 (Iowa 1972); In re Estate of Waddington, 201 N.W.2d 77, 78--79 (Iowa 1972); North Iowa Steel Co. v. Staley, 253 Iowa 355, 357, 112 N.W.2d 364, 365. Express mention of the possibility of reprosecutio......
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First Nat. Bank of Ottumwa v. Bair, No. 2-58136
...envisions. We also note the director's position here is 180 degrees from the department's position in In re Estate of Waddington, 201 N.W.2d 77 (Iowa 1972), where we adopted its position that certain statutes generating additional inheritance tax must be literally construed and applied, eve......
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Bliven's Estate, Matter of, No. 2--57194
...Page 370 It is also understood tax exemption statutes are to be strictly construed in favor of taxation. See In re Estate of Waddington, 201 N.W.2d 77, 79 (Iowa 1972) and citations; Wisconsin Evangelical Lutheran Synod v. Regis, 197 N.W.2d 355, 356 (Iowa III. At the outset Code § 450.2 prov......
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State v. Binkley, No. 55296
...exclusio alterius (express mention of one thing implies exclusion of others), is applicable in this case. See In re Estate of Waddington, 201 N.W.2d 77 (Iowa, filed Sept. 19, 1972); North Iowa Steel Company v. Staley, 253 Iowa 355, 112 N.W.2d 364 (1961). By specifically requiring use of san......
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State v. Johnson, No. 56403
...mention of one thing implies exclusion of others. State v. Binkley, 201 N.W.2d 917, 919--920 (Iowa 1972); In re Estate of Waddington, 201 N.W.2d 77, 78--79 (Iowa 1972); North Iowa Steel Co. v. Staley, 253 Iowa 355, 357, 112 N.W.2d 364, 365. Express mention of the possibility of reprosecutio......
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First Nat. Bank of Ottumwa v. Bair, No. 2-58136
...envisions. We also note the director's position here is 180 degrees from the department's position in In re Estate of Waddington, 201 N.W.2d 77 (Iowa 1972), where we adopted its position that certain statutes generating additional inheritance tax must be literally construed and applied, eve......