Facts: Paul Willard is aself-employed attorney. Because of erroneous advice that he gave,one of Paul’s clients incurred unnecessary costs of $20,000. Theclient threatened to sue Paul for malpractice, and Paul reimbursedthis sum to his client. Although his malpractice insurance wouldhave covered the payment, he chose not to file for reimbursement.Because he had two recent malpractice claims, Paul is convincedthat another claim could cause him to be either uninsurable orinsurable only at unaffordable rates.
Issue: May Paul deduct the$20,000 reimbursement paid to his client?
Please solve the conclusion & Analysis:
Conclusion:
Analysis:
Code Section 162
Code Section 165
Based on above Section
