First, it should be noted that Dulik is a Tax Court summary opinion; pursuant to section 7463(b), the decision was not reviewable by any other court, and the opinion shall not be treated as precedent for any other case.

Then, if you read the case, you will find that there were a number of other issues involving the taxpayer’s employment, and the legal fees were paid in the three months after he was terminated and before he started any other business activity.