Income Tax—Deductibility of Legal Expenses

P made a gift of 1,000 shares of stock to members of his family and paid the federal gift tax thereon. Thereafter P was notified by the Commissioner of Internal Revenue of a gift tax deficiency of $145,276.50. Through his attorney, P secured a settlement of the deficiency for $15,612.75. He did not deduct the legal expenses of the gift tax controversy from his gross income but later claimed an income tax refund on the ground that the legal fee should have been deducted under Int. Rev. Code § 23 (a) (2). The District Court held for P. The Court of Appeals reversed. On certiorari, Held: affirmed. The non-deductibility of such expenditures is indicated both by the absence of any affirmative allowance of their deductibility under Int. Rev. Code § 23 (a) (2) and the express denial of the deductibility of all personal and family expenses under Int. Rev. Code § 24(a) (1). Lykes v. United States, 343 U.S. 118 (1952)