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The Court further noted that deductions would be allowed only if
the employer forced the taxpayer to live somewhere other than the
vicinity of the business. Id. at 474.
In this case, petitioner's tax home was Santa Clara, and he
lived in Auburn for personal reasons. Petitioner, therefore, is
not entitled to deductions for his travel between Santa Clara and
Auburn and for expenses incurred in Santa Clara.
Regarding the travel that petitioner performed on the job,
petitioner has the burden of proving, through records or some
type of documentary evidence, that he is entitled to the
deduction. Sec. 274(d). Petitioner offered no such evidence.
Further, the $28,175 he deducted as a draw was used for personal
living expenses. As such it is part of the business profit of
the sole proprietorship reported on Schedule C, and not
deductible. Respondent's determinations are sustained.
Turning to the health insurance issue, we note that the
deductibility of expenses is a matter of legislative grace. New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
Generally health insurance premiums are a medical expense
deductible as an itemized deduction to the extent they exceed 7.5
percent of adjusted gross income. Sec. 213(a), (d)(1)(C). Self-
employed individuals, however, generally may deduct 25 percent of
the amount paid for health insurance from gross income, without
the restrictions imposed on other medical expense deductions.
Sec. 162(l). We, therefore, sustain respondent's disallowance of
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