William L. Rudkin Testamentary Trust v. Comm'r
United States Tax Court
T is a trust established in 1967. The trustee engaged an outsidefirm to provide investment management advice for T, and the firmwas paid $ 22,241.31 for such services during the 2000 taxableyear. On its Federal income tax return, T deducted these fees(rounded) in full.
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T is a trust established in 1967. The trustee engaged an outsidefirm to provide investment management advice for T, and the firmwas paid $ 22,241.31 for such services during the 2000 taxableyear. On its Federal income tax return, T deducted these fees(rounded) in full. Held: The investment advisory fees paid by T are notfully deductible under the exception provided in sec. 67(e)(1),I.R.C., and are deductible only to the extent that they exceed 2percent of the T's adjusted gross income pursuant to sec. 67(a),I.R.C.
1Opinion of the Court
Wherry, Judge:
Respondent determined a Federal income tax deficiency in the amount of $4,448 with respect to the 2000 taxable year of the William L. Rudkin Testamentary Trust (the trust). The sole issue for decision is whether investment advisory fees paid by the trust are fully deductible under the exception provided in section 67(e)(1) or whether the fees are deductible only to the extent that they exceed 2 percent of the trust’s adjusted gross income pursuant to section 67(a).1
FINDINGS OF FACT
The majority of the facts have been stipulated and are so found. The stipulations of the parties,…
2Cases cited7 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- E. Norman Peterson Marital Trust, Chemical Bank, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1996
- Peterson Marital Trust v. CommissionerUnited States Tax Court · 1994
- Scott v. United StatesCourt of Appeals for the Fourth Circuit · 2003
- Mellon Bank, N.A. v. United StatesCourt of Appeals for the Federal Circuit · 2001
2 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Knight v. CommissionerSupreme Court of the United States · 2008
- William L. Rudkin Testamentary Trust v. CommissionerCourt of Appeals for the Second Circuit · 2006
- William L. Rudkin Testamentary Trust U/W/O Henry A. Rudkin, Michael J. Knight, Trustee v. CommissionerUnited States Tax Court · 2005
- William L. Rudkin Testamentary Trust v. Comm'rUnited States Tax Court · 2005