Explain why the legal fees paid in the following three situations are treated differently for income tax purposes:
a. Jim pays $10,000 in legal fees in obtaining a divorce. None of the $10,000 is deductible.
b. Camella invents and patents a device that shells nuts. When she learns that another company is selling copies of her device, she pays an attorney $10,000 to enforce her patent. The $10,000 is fully deductible.
c. Melody pays $10,000 in legal fees for advice relating to investments she owns.
Only $6,000 of the fees is deductible.