Zietz v. Commissioner

OPINION.

Harron, Judge:

The chief question is whether legal fees in the total amount of $9,977 constitute nonbusiness expenses paid for conserving or maintaining property held for the production of income within the scope of section 23(a) (2) of the 1939 Code,1 or are capital expenses. Although the problems which required the employment of attorneys fall roughly into two classes, the question with respect to each class is essentially the same.

In Estate of Hedwig Zietz, 34 T.C. 351, in connection with a determination of the Commissioner that securities having a value of $697,504.29, located in…