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Essay text:
It may arise out of contract, tort, and operation of law.
Claims against Insolvent Person
For claims of the deceased against insolvents persons to be deductible:
1. the full amount of the claim must be included in the gross estate
2. the incapacity of the debtors to pay their debts due to insolvency must be proven
Unpaid Mortgages
For unpaid mortgage to be deductible:
1. the fair market value of the property mortgaged must be included in the gross estate in full
2. the unpaid mortgage shall be to the extent that it was contracted bona fide and for an adequate and full consideration in money or money’s worth
Unpaid Taxes
These are taxes which have accrued as of the death of the decedent but which were unpaid as of the time of death...
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