James F. Boccardo Lorraine v. Boccardo v. Commissioner of Internal Revenue

NOONAN, Circuit Judge:

James F. Boccardo and Lorraine Y. Boc-cardo appeal from a judgment of the United States Tax Court denying them a deduction. We reverse and direct the entry of judgment for the Boceardos.

FACTS

James Boccardo is a partner in a law firm (the firm), whose practice consists primarily of personal injury cases. During the tax years in question, 1982 and 1983, there were twenty lawyers in the firm, half of whom were partners. The firm had offices in California and in Washington, D.C. The firm used the cash method of accounting in the federal income tax returns of the partnership.…