Bush

The petition on file in this court is for the review of a decision of the United States Board of Tax Appeals, entered January 31, 1936, under Docket No.. 7783, and unreported. The Board determined that a deficiency existed in the income tax return of the petitioners, as trustees, for the year 1932, in the sum of $7,874.57.

According to the stipulated statement of evidence, the facts in the case are as follows:

Clarence J. Berry, a resident of San Francisco, Cal., died on October 23, 1930, leaving a last will and testament, which was duly admitted to probate. Attached to the will was a consent to the making thereof, executed by Ethel D. Berry, the wife of the decedent, containing an agreement by her to waive her community interest in the property in exchange for the provisions of the will.

Mr. Berry’s estate was appraised by the United States government for estate tax purposes, at $2,839,863.47, and consisted chiefly of community property. All of the assets of the estate, except property appraised at less than $50,000, were distributed under the terms of the will, to the petitioners herein and to J. C. Berry, as trustees, by decree of the superior court in the City and County of…