@AmeliesUncle I am not sure that the revenue ruling is exactly on point for this specific question.
The facts in the revenue ruling cited were that the expenses were incurred while the taxpayer was in a trade or business, but just wasn't able to pay at the time. The debt was then paid subsequent to the business closing.
Those aren't the facts for this particular individual; the expenses in question are incurred after the close of the trade or business.
While I may take a "gray" position, it would depend on whether the phone and fax were only "used" for the prior medical practice. Since I am fairly certain the costs we are talking about are not too significant, I am not sure the risk vs reward are beneficial. I would be fairly certain that the IRS, if audited, would not acquiesce based on the revenue procedure. At that point, the costs to fight the battle most likely exceed any tax benefit.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
