Sudhir P. Srivastava and Elizabeth S. Pascual - Page 26

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          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),           




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