Dennis W. Stark - Page 23



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          benefit of the petitioner on account of a highly personal,                  
          emotionally charged familial dispute."                                      
               We believe respondent misapplies Gilmore.  Petitioner and              
          William had been business partners.  Their dispute, and William's           
          claims, arose from the terms and circumstances of William's                 
          buyout and, to a certain extent, petitioner's treatment of him in           
          the workplace.  We believe that all of the claims concerned                 
          actions by petitioner in his capacity as a shareholder, officer,            
          or employee of Lakeview, or in the workplace.  In our view, these           
          claims had their origin in "income-producing activities" as that            
          term was used in Gilmore to distinguish the origins of deductible           
          business expenses from those of nondeductible personal ones.                
          That the litigants were father and son, and their dispute heavily           
          infused with familial emotions, does not make the attendant legal           
          expenses "personal" within the meaning of Gilmore.  Had Mr.                 
          Gilmore's wife also been his business partner, and sought a                 
          portion of the automobile dealership stock on that basis, the               
          Court may well have reached a different result.  Cf. Kornhauser             
          v. United States, 276 U.S. 145 (1928) (legal expenses of taxpayer           
          in defending against claim of former business partner that fees             
          paid to taxpayer were for services rendered during partnership,             
          held deductible).                                                           
               Moreover, we believe that the return of his Lakeview stock             
          was the most significant relief sought by William, given its                
          value in relation to the other relief sought.  That stock had               
          been redeemed by Lakeview, not purchased by petitioner.                     



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