Fung

*329 MEMORANDUM **

The estate of Hong Hing Fung claims that it is entitled to a marital deduction for the value of decedent’s property located within the United States. The estate also claims that it was entitled to offset the value of the Monte Vista property with the amount of the debt encumbering that property when calculating the gross estate. The Commissioner determined that the estate was not entitled either to the marital deduction or to the loan offset. The Tax Court affirmed the Commissioner’s findings, and ordered the estate to pay $ 144,-980 in taxes. We affirm the decision of the Tax Court.

The tax code allows a “marital deduction” for “any interest in property which passes or has passed from the decedent to his surviving spouse....” I.R.C. § 2056(a). An interest “will be regarded has having ‘passed from the decedent to his surviving spouse’ only if the assignment or surrender was a bona fide recognition of enforceable rights of the surviving spouse in the decedent’s estate.” 26 C.F.R. § 20.2056 (c)-2 (d)(2). “If the assignment or surrender was pursuant to a decree rendered by consent, or pursuant to an agreement not to contest the will or not to probate the will, it…