Rolf Kirsch - Page 5

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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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