Martz

This petition to review arises out of two consolidated cases before the Board, of Tax Appeals wherein it was decided that there was a deficiency of $5,496.20' for the year 1928 in the case of Regina *111 Martz and a deficiency for the same year of $14,581.53 in the case of A. J. Martz.

Elizabeth Martz, mother of the petitioners, died November 20, 1927, and A. J. Martz was appointed administrator of her estate. Inheritance taxes in the sum of $427,043.16 were paid the state of California, out of the estate, on May 10, 1928. On May 29, 1928, a partial distribution of the estate was made to petitioners here, which estate consisted of income-producing real estate. The income from the estate so distributed to the petitioners amounted to approximately $21,000 per month. The petitioners in their individual income tax returns for the year 1928, filed in March, 1929, each claimed a deduction of $213,-521.58, being one-half of the inheritance tax paid by the estate. A. J. Martz, as administrator of the estate, in the income tax return of the estate for the year 1928, did not take the amount of the inheritance tax as a deduction. The respondent disallowed these amounts taken as deductions…