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($6,586 out-of-pocket expenses - $1,739 portion of board payment
for food expenses - $509 clothing allowance = $4,338).
Deductions are a matter of legislative grace. New Colonial
Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Petitioners bear
the burden to prove they are entitled to the deductions they
claim. Welch v. Helvering, 290 U.S. 111, 115 (1933); Rule
142(a).
Section 170 allows a deduction for any charitable
contribution to or for the use of an entity organized and
operated exclusively for religious, charitable, scientific,
literary, or educational purposes. Section 1.170A-1(g), Income
Tax Regs., provides, in pertinent part, that "unreimbursed
expenditures made incident to the rendition of services to an
organization contributions to which are deductible may constitute
a deductible contribution." In applying section 1.170A-1(g) to
amounts expended by individuals who provide foster care, the
Internal Revenue Service has ruled that "foster parents are
entitled to a charitable contribution deduction within the
limitations of section 170 of the Code for any unreimbursed out-
of-pocket expenses incurred in supporting a foster child." Rev.
Rul. 77-280, 1977-2 C.B. 14, 17.
There is no question that the foster care reimbursements
petitioners received from Monroe County are not taxable income
under section 131. In the instant case, petitioners claim their
total foster care expenses exceed their reimbursement. As
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