United States of America, and v. Richard W. Norton, Jr., and Richard W. Norton, Jr., and v. United States of America, And

TUTTLE, Circuit Judge.

This appeal and cross appeal from a judgment in favor of a taxpayer by a District Court without a jury present three questions: (1) Is a payment by a transferree after termination of an inter vivos trust for his benefit, which payment represents a deficiency in income taxes owed by the trust prior to its termination and interest on such deficiency from the due date up to the date of termination, deductible by such transferee as a payment of interest on indebtedness or as an ordinary and necessary nonbusiness expense paid during the taxable year for the production or…