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reflecting payments by petitioners of $1,500 during 1996. The
parties stipulated that in 1996 petitioners paid their counsel
$2,175 and paid various other legal expenses of $822. However,
there is little evidence that these expenses were related to
petitioner’s business. To the contrary, the office records and
petitioner’s testimony indicate that the legal work was primarily
related to the matter involving the Winnebago, discussed infra,
and was therefore personal in nature and nondeductible under
section 262(a). Petitioner testified that a portion of the legal
expenses was incurred for obtaining advice on whether filing for
bankruptcy was necessary in order to continue his business
activity. Certain bankruptcy-related legal expenses incurred in
connection with a business activity may be deductible as business
expenses. See, e.g., Tarakci v. Commissioner, T.C. Memo. 2000-
358. However, petitioners have not shown that any amount of the
legal expenses they incurred was connected with petitioner’s
business. Although a record for a $75 billing refers to a matter
involving “ch 13”, presumably a reference to a chapter 13
bankruptcy proceeding, this amount was also billed as legal work
for the personal Winnebago lawsuit; nothing indicates that there
was any connection to petitioner’s sole proprietorship.
With respect to depreciation, the only evidence presented by
petitioners was a copy of the supporting schedule which had been
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