- 11 -
Petitioner's litigation began in 1979 when he sought a
divorce from his former wife, Ms. Bledsoe. This litigation
required the division of extensive property that had been
acquired during their marriage. After the divorce was granted in
1981, Ms. Bledsoe appealed the decision, claiming that the court
abused its discretion regarding the property division. The
divorce decree was affirmed.
In 1983, Resthaven sued Ms. Bledsoe for $14,250 plus
interest for the balance due on the note that she had assumed.
Resthaven's claim was based in large part on the divorce decree.
Ms. Bledsoe counterclaimed and argued that petitioner and
Resthaven had failed to fulfill their obligations to her under
the divorce decree. In 1985, Ms. Bledsoe confessed judgment on
the note and mortgage, and in 1989, this litigation ended.
Section 162 provides taxpayers with deductions for all
"ordinary and necessary expenses paid or incurred during the
taxable year in carrying on any trade or business". Section 212
allows deductions for all
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 * * *
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011