Memo 1999-131 (1999)[1] is a case that demonstrates a policy limit on the deduction of business expenses.

The taxpayer began visiting legal brothels in order to develop characters for a book called "Searchlight, Nevada.

allows deductions for all the "ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business..."[3] Does section 162(a) allow for the deduction of the expenses to the taxpayer in visiting brothels in order to research his upcoming novel?

The court found that "expenditures incurred by petitioner to visit prostitutes are so personal in nature as to preclude their deductibility.

contains a number of policy exceptions on deductions for business expenses: Text of Vitale v. Commissioner, T.C.