Scripps v. Commissioner of Internal Revenue

SIMONS, Circuit Judge.

The petitions for review involve identical legal questions: Whether estate taxes paid by a revocable trust created by the decedent in his lifetime may be deducted from the income of the trust notwithstanding section 23(c) of the Revenue Acts of 1928 and 1932, 26 U.S.C.A. § 23 note, which provides that estate taxes shall -be allowed as a deduction only to the estate; and the subsidiary question whether interest on deferred payments of estate taxes paid by the trust is deductible from its income under section 23(b), 26 U.S.C.A. § 23(b) and note, regardless of its right to…