E. W. Brown, Jr. And Elizabeth S. Brown v. United States

MORGAN, Circuit Judge:

The single question on this appeal by the government is whether the district court erred in holding that ad valorem property taxes attributable to income-producing properties need be deducted from gross income to arrive at adjusted gross income. We hold that the government’s position should have been sustained and reverse.

The taxpayers, E. W. Brown, Jr., and Elizabeth S. Brown, husband and wife, filed a joint federal income tax return for the calendar year 1962. On their return, they deducted the sum of $52,942.-50 in ad valorem property taxes attributable to business…