DELL 1) Jackson operates a stock brokerage. He paid the Chief Financial Officer of Nextel $500,000 for information regarding the pending merger of Nextel and Sprint. Jackson received material non-public information from the CFO of Nextel and, in the process, violated numerous criminal and civil statutes. Th SEC investigated Jackson and fined him $2,500,000. In connection with the SEC probe, Jackson hired legal counsel. His attorney's fees totaled $375,000. His attorney was also his brother. The fees paid to brother were not reasonable. His brother would ordinarily only charge $100,000 for the legal work Jackson received - Jackson paid extra just because it was his brother. What amounts (if any) can Jackson deduct as an ordinary and necessary business expense. 21 Rona