Taylor Miller - Page 44




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          business expenses, see Guill v. Commissioner, 112 T.C. 325                  
          (1999), we have denied petitioner’s pension contribution                    
          deduction on the ground that the recovery in her settlement of              
          the State Farm class action lawsuit did not constitute earned               
          income from services actually rendered by her in conducting a               
          Schedule C business.  There was no nexus between the recovery and           
          the rendering of any personal services by petitioner to the                 
          payor.  The nexus was different; the recovery was connected to,             
          had its origin in, and arose out of State Farm’s invidious                  
          discrimination, which deprived her of the opportunity to perform            
          any such services.                                                          
               Our denial of petitioner’s claim to a pension plan                     
          contribution deduction on that ground forecloses her claim that             
          she is entitled to an above-the-line Schedule C deduction for               
          legal fees, rather than the itemized deduction subject to the 2-            
          percent limitation of section 67 that respondent allowed in the             
          statutory notice.                                                           
               To give effect to all the foregoing,                                   

                                            Decision will be entered for             
          respondent.                                                                 











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