- 4 -
merchant banker. In 1985, petitioner was employed by Advanced
Energy Technologies (AET) as vice president and chief financial
officer (CFO). He was also on the board of directors of AET
until January 1989. AET terminated petitioner from his position
as CFO in September 1988. In May 1989, petitioner returned to
AET as CFO and was again terminated in January 1990.
The first issue is petitioner’s claim to Schedule A
deductions of $11,981.54 for miscellaneous legal expenses.
Petitioner paid legal fees in connection with litigation against
his former employer, AET, for breach of his employment contract
and for the recovery of retirement benefits. Petitioner also
paid legal fees in connection with litigation against two other
corporations over the purchase of certain film rights and assets.
Another legal action involved a malpractice claim against one of
his former attorneys.
Of the $11,981.54 claimed by petitioner for miscellaneous
legal expenses on Schedule A of his return, respondent concedes
petitioner’s entitlement to a deduction of $5,000 for legal
expenses, leaving at issue $6,981.54.
Based on the evidence presented at trial, the Court is
satisfied that petitioner is entitled to an additional deduction
of $5,501.86 for legal expenses. This consists of $3,000, which
is shown as a credit on a statement presented at trial from one
of the law firms that represented petitioner, and $2,501.86,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011