- 26 - grounds 749 S.W.2d 762, 766 (Tex. 1987). In Newspapers, Inc. v. Matthews, 339 S.W.2d 890, 893 (Tex. 1960), the Texas Supreme Court reaffirmed that a business is not the subject of libel and that the defamation, if any, is of the owner of the business and not the business itself, whether the owner be an individual, partnership, or corporation. If as a result of defamatory statements attacking the individual's character, the individual suffers some impairment of his professional relationships--in this case, petitioner's relationship with his patients and hospitals--the injury is to the person, although it may have derivative consequences for the business. Roemer v. Commissioner, 716 F.2d 693 (9th Cir. 1983) (a defamatory attack on one's character should not be confused with the damage that flows from that injury), revg. 79 T.C. 398 (1982); see also Threlkeld v. Commissioner, 87 T.C. 1294 (1986) (holding Roemer v. Commissioner, 79 T.C. 398 (1982), revd. 716 F.2d 693 (9th Cir. 1983), will no longer be followed by this Court and expressing agreement with the reasoning for its reversal by the Court of Appeals for the Ninth Circuit), affd. 848 F.2d 81 (6th Cir. 1988). As the defamation of an individual is a personal injury under the law of Texas, the expenses of litigating petitioner's claim for personal injury are not deductible as ordinary and necessary expenses incurred in carrying on a trade or business. Petitioner cites McKay v. Commissioner, 102 T.C. 465 (1994),Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Next
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