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from Gillette Tire, nor to the installation of tires on
petitioner's trucks.
Also, Agent Siebert, during his audit of petitioner's income
tax liability, asked to see all of petitioner's documents
relating to the rental of Nikki's concrete trucks, including
documents which showed how the rental rate was set and how many
trucks were being rented. Petitioner had very few records with
reference to the rental of trucks and no records showing the
number of trucks that were used by petitioner on a weekly,
monthly, or yearly basis.
Respondent in her notice of deficiency determined that
petitioner was not entitled to deduct $258,425 of its claimed
deduction for truck maintenance expenses. This amount was the
total amount of checks numbered 4318 and 4369 to Gillette Tire
which petitioner claims were for tires purchased for its trucks.
OPINION
Section 162(a) generally allows a taxpayer a deduction for
all the ordinary and necessary expenses paid or incurred during
the taxable year in carrying on any trade or business. These
expenses must be directly connected with or pertaining to the
taxpayer's trade or business. Sec. 1.162-1(a), Income Tax Regs.
As a general rule, where an expense is the obligation of
another, a taxpayer cannot properly claim a deduction for the
expense as an ordinary and necessary expense of his business.
Deputy v. du Pont, 308 U.S. 488 (1940); Betson v. Commissioner,
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