{"argument_date":"2007-11-27T00:00:00Z","arguments":[{"argument_date":"2007-11-27T00:00:00Z","heading":"What happened at the argument","official_detail_url":"https://www.supremecourt.gov/oral_arguments/argument_transcript/2007","official_transcript_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","paragraphs":["The taxpayer claims the statute allows full deductions for unique trust costs.","The IRS contends these costs fall under a general deduction limit.","Justices questioned whether specific repairs are distinctive to trust management.","Justices asked about the burden of proof for claiming this exception."],"reargument":false,"sequence":1,"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 10, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 10, lines 7-17"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 7-17"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 25-37","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 4, lines 25-37"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 11-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 11-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 23-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 23-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 19-21","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 19-21"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 7-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 7-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 13-29","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 7, lines 13-29"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 3-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 8, lines 3-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 17-25","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 17-25"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 29-31","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 29-31"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 39-39","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 39-39"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 49-3","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 49-3"}]}],"caption":"Knight v. Commissioner","case_history":[{"changed_at":"2026-08-29T20:06:27.516114Z","explanation":"An official oral-argument transcript was verified.","status":"argued"}],"case_status":"argued","dek":"Taxpayers and the IRS dispute whether specific trust costs qualify for a deduction exception.","dek_sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}],"dispositions":[],"latest_court_document_date":"2007-11-27T00:00:00Z","maturity":"official_transcript","official_detail_url":"https://www.supremecourt.gov/oral_arguments/argument_transcript/2007","official_disposition_urls":[],"official_docket_url":"https://www.supremecourt.gov/docket/docketfiles/html/public/06-1286.html","primary_docket":"06-1286","revisions":[{"correction_note":"Rewritten to the concise citizen-facing editorial standard.","created_at":"2026-08-31T11:58:49.332956Z","maturity":"official_transcript","revision_number":1},{"correction_note":"Migrated to the dated official Court activity contract without model use.","created_at":"2026-09-05T03:22:24Z","maturity":"official_transcript","revision_number":2}],"schema_version":"1.1","sections":[{"heading":"What this case is about","paragraphs":["The case tests the scope of a tax code exception for trust expenses."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}]},{"heading":"How the case got here","paragraphs":["The Supreme Court heard oral argument in this case on November 27, 2007."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 7-17"}]},{"heading":"What each side wants","paragraphs":["The taxpayer wants the court to allow a full deduction for specific trust costs.","The IRS wants the court to apply a standard deduction limit to those costs."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}]},{"heading":"What each side says","paragraphs":["The taxpayer argues these costs are unique to managing trust property.","The IRS argues these costs are standard investment management expenses."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}]},{"heading":"What the justices asked","paragraphs":["Does the taxpayer bear the burden of proving the exception applies?","Are costs like roof repairs distinctive to trust property preservation?"],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 10, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 10, lines 7-17"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 25-37","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 4, lines 25-37"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 11-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 11-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 23-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 23-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 19-21","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 19-21"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 7-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 7-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 13-29","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 7, lines 13-29"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 3-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 8, lines 3-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 17-25","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 17-25"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 29-31","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 29-31"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 39-39","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 39-39"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 49-3","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 49-3"}]},{"heading":"Why it matters","paragraphs":["This dispute defines which trust expenses receive full tax deductions. It affects how trustees calculate taxable income for estates. It clarifies the boundary between unique trust duties and general investment costs."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}]},{"heading":"What happens next","paragraphs":["This article currently covers the argument record. Use the official docket link for later case activity."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 10, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 10, lines 7-17"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 7-17","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 7-17"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 25-37","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 4, lines 25-37"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 11-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 11-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 23-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 5, lines 23-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 19-21","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 19-21"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 7-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 6, lines 7-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 13-29","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 7, lines 13-29"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 3-13","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 8, lines 3-13"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 17-25","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 17-25"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 29-31","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 29-31"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 39-39","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 39-39"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 49-3","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 9, lines 49-3"}]}],"slug":"2007-06-1286-knight-v-commissioner","term":"2007","title":"Do trust expenses for preserving property count as investment management fees?","title_sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 25, lines 39-49","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 25, lines 39-49"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 3, lines 19-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2007/06-1286.pdf","page_label":"file page 3, lines 19-23"}],"topics":[],"undated_disposition_date_fallback":null,"updated_at":"2026-09-05T03:22:24Z"}