Port v. United States

JONES, Chief Judge.

The question is whether certain expenditures for legal services incurred By plaintiff Walter Port 1 are deductible as ordinary and necessary business expenses under § 23(a) (1) or as nontrade or nonbusiness expenses under § 23(a) (2) of the Internal Revenue Code of 1939, 26 U.S.C. § 23(a) (1, 2) 2 . The Government resists the deduction primarily on the basis of § 24(a) (1) of the Code, 26 U.S.C. § 24(a) (1) 3 . The facts are not in dispute.

Plaintiff is a duly licensed medical doctor in the State of California. In 1952, he was indicted under 26 U.S.C. § 145 (b) 4 for willful…