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petitioner to protect the validity of the Trust and the Trust's
title to Trust property.
OPINION
Section 212 authorizes a deduction for ordinary and
necessary expenses paid or incurred for, inter alia, the
management, conservation, or maintenance of property held for the
production of income.5 To satisfy the requirements of section
212, the expenditure must be reasonable in amount and must bear a
reasonable and proximate relationship to the management,
conservation, or maintenance of property held for the production
of income. See Bingham Trust v. Commissioner, 325 U.S. 365, 370
(1945).
The terms "management", "conservation", and "maintenance"
have been construed to refer to the protection, safeguarding, or
upkeep of physical assets and not to the taxpayer's retention of
5SEC. 212. EXPENSES FOR PRODUCTION OF INCOME.
In the case of an individual, there shall be
allowed as a deduction all the ordinary and necessary
expenses paid or incurred during the taxable year--
(1) for the production or collection of
income;
(2) for the management, conservation, or
maintenance of property held for the
production of income; or
(3) in connection with the
determination, collection, or refund of any
tax.
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