- 22 -
Except as otherwise provided, gross income includes all income
from whatever source derived, including interest income. Sec.
61(a)(4); sec. 1.61-7, Income Tax Regs. Petitioners have
presented no evidence to challenge respondent's determination on
this issue, and accordingly, we hold for respondent.
Hans Hammann's Journalism Activity
As indicated above, deductions are a matter of legislative
grace, and the taxpayer bears the burden of proving that he or
she is entitled to any deduction claimed. Rule 142(a); INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice
Co. v. Helvering, 292 U.S. at 440; Welch v. Helvering, supra at
115. This includes the burden of substantiation. Hradesky v.
Commissioner, 65 T.C. at 90. Deductions for travel and
entertainment are subject to the more stringent substantiation
requirements imposed by section 274(d).
Petitioners have not presented any evidence to show that the
travel and entertainment expenses deducted in 1983 were ordinary
and necessary expenses incurred in carrying on a trade or
business. In addition, petitioners have not carried their burden
of proof with respect to the substantiation requirements imposed
by section 274(d). Accordingly, we sustain respondent's
determination on this point.
Charitable Contribution Deduction
Section 170 provides for the allowance as a deduction of any
charitable contribution as defined under section 170(c) made
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011