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more than a guess made to salvage some part of a deduction out of
that which is simply not deductible. The professional fees at
issue were incurred in defending a lawsuit which sought to
invalidate the Trust. An allocation with respect to the various
claims for relief, even if made, would not change our conclusion
or the result that flows from it. The professional fees are not
deductible under section 212; they are capital expenditures under
section 263.
We have carefully considered all remaining arguments made by
petitioner for a result contrary to that expressed herein, and,
to the extent not discussed above, we find them to be irrelevant
or without merit.
Conclusion
The professional fees incurred by petitioner in connection
with the Trust litigation had their origin in a dispute over
title to property. Therefore, those fees must be capitalized.
To reflect the foregoing and the concessions by both
parties,
Decision will be entered
under Rule 155.
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