Northern Trust Co. v. Campbell

DUFFY, Circuit Judge.

This is a suit for recovery of income taxes in the sum of $5,772.46, paid by Ross W. McKinstry, now deceased, for the year 1946. The question at issue is whether a taxpayer in computing net income may deduct, under § 23(a) (2) of the Internal Revenue Code, 26 U.S. C.A., attorney fees incurred in defending a claim for federal estate taxes asserted against him as transferee. The district court determined that the attorney fees and costs paid by McKinstry were deductible and concluded, “Such expenses are directly and proximately related to the conservation and maintenance of…