- 52 -
on brief, that petitioners underreported the gross receipts of
NDV by $40,111, $65,009, $41,190, and $52,111 for the years 1987,
1988, 1989, and 1990, respectively.
Automobile Expenses
Petitioners argue that they are entitled to deductions under
section 162(a) for each of the years at issue for expenses
incurred with respect to the use of an automobile. Respondent
determined in the notice that petitioners are not entitled to the
automobile expense deductions that they claimed in their returns
for 1987, 1989, 1990, and 199139 and argues that they are not
entitled to the deductions for such expenses that they claimed in
the amended return they filed for 1988.40 Petitioners bear the
burden of proof on this issue.
Section 162(a) generally allows a deduction for ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on a trade or business. The determination of whether an
expenditure satisfies the requirements for deductibility under
section 162 is a question of fact. Commissioner v. Heininger,
320 U.S. 467, 475 (1943). In general, an expense is ordinary if
it is considered "normal, usual, or customary" in the context of
the particular business out of which it arose. Deputy v. du
39 Petitioners did not claim any automobile expense deductions
in their return for 1988.
40 Respondent made no determination with respect to that amended
return.
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