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Petitioners claimed $39,274 of legal, professional, and
related expenses in connection with their daughter’s divorce and
custody litigation. We note that some portion of the claimed
expenses related to petitioners’ attempt to gain custody of their
grandchild. Petitioner argues that he was engaged in a full-time
consulting business during the years under consideration and that
his involvement in Michelle’s divorce and custody proceedings was
part of that endeavor. Respondent has countered that, as a
preliminary matter, petitioner’s consulting activity did not rise
to the level of being a trade or business. Even if petitioner’s
consulting activity was a trade or business, respondent argues
that the expenses paid in connection with Michelle’s domestic
relations litigation are not directly connected with or
proximately related to petitioner’s consulting activity.
Finally, respondent argues that the origin and very nature of
petitioners’ involvement in their daughter’s domestic relations
activity are personal. We agree with respondent that the
expenses in question are not deductible.3
Petitioner retired from his position as a drilling manager
for Atlantic Richfield during 1987 and after that time was paid
on one occasion during 1991 for consulting in connection with his
3 We need not decide whether sec. 7491(a) affects the
placement of the burden of proof here, because we resolve the
issues on the basis of a preponderance of the evidence in the
record.
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