William L. Rudkin Testamentary Trust v. Commissioner

SOTOMAYOR, Circuit Judge.

The question presented on this appeal is whether investment-advice fees incurred by a trust are fully deductible in calculating adjusted gross income for purposes of *151the Internal Revenue Code (“IRC”) under 26 U.S.C. § 67(e)(1) (2000), or whether these fees are deductible only to the extent that they exceed two percent of the trust’s adjusted gross income under § 67(a). Petitioner-appellant Michael J. Knight, trustee of the William L. Rudkin Testamentary Trust (“the Trust”), appeals from a decision of the United States Tax Court (Robert A. "Wherry, Jr., J.). We affirm…