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Tax Law Update 2008-04-01 (1)Tax Law Update 2008-04-01 (1)
The Internal Revenue Service issues interim guidance on Section 67 deductions following Rudkin. On Jan. 16, 2008, the Supreme Court issued its decision in Knight, Trustee of William L. Rudkin Testamentary Trust v. Commissioner, 128 S.Ct. 782 (2008), holding that costs paid to an investment advisor by a non-grantor trust or estate generally are subject to the 2 percent floor for miscellaneous itemized
April 1, 2008
David A. Handler partner in the Chicago office of Kirkland & Ellis LLP
The Internal Revenue Service issues interim guidance on Section 67 deductions following Rudkin.
On Jan. 16, 2008, the Supreme Court issued its decision in Knight, Trustee of William L. Rudkin Testamentary Trust v. Commissioner, 128 S.Ct. 782 (2008), holding that costs paid to an investment advisor by a non-grantor trust or estate generally are subject to the 2 percent floor for miscellaneous itemized deductions under Internal Revenue Code Section 67(a). Final regulations consistent with this decision will be issued under Treasury Regulations Section 1.67-4. The regulations also will address the issue raised when a non-grantor trust or estate pays investment advisory fee...
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