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B. Legal and Professional Services
In general, legal fees are deductible under section 162 only
if the matter with respect to which the fees were incurred
originated in the taxpayer’s trade or business and only if the
claim is sufficiently connected to that trade or business. See
United States v. Gilmore, 372 U.S. 39 (1963); Kenton v.
Commissioner, T.C. Memo. 2006-13.
Petitioner claimed a $500 deduction for legal and
professional services, representing the fee she paid Prepaid
Legal Services for legal advice, which respondent disallowed in
full. At trial, the parties agreed that petitioner paid $358 of
that amount. Petitioner testified that she used the service for
both personal and business matters. However, the record does not
provide a reasonable basis for allocating the cost of the service
between personal and business use. We therefore do not apply the
Cohan rule, see Vanicek v. Commissioner, supra, and respondent’s
determination is sustained.
C. Supplies and Office Expense
Petitioner claimed a $1,852 deduction for supplies and a
$1,900 deduction for office expense which respondent disallowed
in full. At trial, the parties agreed that petitioner paid $472
for a postage meter, $176 for “Postal Privilege”, which
petitioner defined as the cost of postage used in connection with
the postage meter, and $270 for a water cooler. Petitioner
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