Rudkin files Supreme Court petition.

• Author: Cantrell, Carol A.

Rudkin Files Supreme Court Petition

by Carol A. Cantrell, Shareholder, Briggs & Veselka Ca., Bellaire, TX, and member, AICPA Tax Division 's Trust, Estate & Gift Tax Technical Resource Panel's Trust Accounting Income Task Force

On March 23, 2007, the Rudkin Testamentary Trust petitioned the Supreme Court to resolve the split in the circuits over whether Sec. 67(e) allows estates and trusts to fully deduct investment management fees. (The American Bankers Association will also file an amicus brief.) The Second Circuit created a three-way split when it held that Sec. 67(e) allows trustees a full deduction only for miscellaneous itemized deductions that "individuals are incapable of incurring." (For details, see Cantrell, "Did the Second Circuit Err in Rudkin Testamentary Trust?" TTA, April 2007, p. 206.)

The Second Circuit's opinion has created even more confusion than before...