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promote its business interest. Respondent argues that the Fund
paid the Defendants’ personal expenses. Petitioner bears the
burden of proof. Rule 142(a); Welch v. Helvering, 290 U.S. 111,
115 (1933).
We agree with respondent that the contributions are not
deductible under section 162(a). Generally, a taxpayer may not
deduct an expense of another person, Deputy v. duPont, 308 U.S.
488 (1940); J. Cordon Turnbull, Inc. v. Commissioner, 41 T.C.
358, 378 (1963), affd. 373 F.2d 87 (5th Cir. 1967); Royal
Cotton Mill Co. v. Commissioner, 29 T.C. 761, 788 (1958), and may
not deduct expenses which are personal in nature, sec. 262;
Johnson v. Commissioner, 72 T.C. 340, 348 (1979). An exception
is found where the taxpayer pays for legal services rendered to
another person, in order to protect or promote the taxpayer’s
business interests. Commissioner v. Tellier, 383 U.S. 687 (1966)
(corporation could deduct legal fees of another when the related
litigation threatened the corporation’s existence);
Commissioner v. Heininger, 320 U.S. 467, 475 (1943); Gould v.
Commissioner, 64 T.C. 132, 134-135 (1975); Lorhrke v.
Commissioner, 48 T.C. 679, 684-685 (1967); Pepper v.
Commissioner, 36 T.C. 886, 895 (1961); Catholic News Publishing
Co. v. Commissioner, 10 T.C. 73, 77 (1948). The origin of the
claim that gave rise to the legal fees, rather than the
consequences of the underlying action, must be evaluated to
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