- 4 -
Total 9,078 0 9,078
180% of the reported expense of $2,160.
Other Expenses5
Item Claimed Allowed Disputed
Referral Fees $130 $0 $01
Gifts 854 216 638
Continuing Education 350 350 0
Tax Preparation 160 0 160
Total 1,494 566 798
1Petitioner concedes that she can not substantiate
expenditures for referral fees, and does not dispute
respondent's disallowance of this deduction.
Schedule A Deductions
Deductions are strictly a matter of legislative grace, and a
taxpayer bears the burden of proving entitlement to any deduction
claimed. Rule 142(a); New Colonial Ice Co. v. Helvering, 292
U.S. 435 (1934); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Moreover, a taxpayer is required to maintain records that are
sufficient to substantiate her deductions. Sec. 6001.
Ordinary and necessary business expenses incurred by an
employee that are not reimbursed by her employer are generally
deductible under section 162(a), which allows a deduction for all
ordinary and necessary expenses paid or incurred during the
taxable year in carrying on a trade or business. Primuth v.
Commissioner, 54 T.C. 374, 377 (1970). Section 274(d) provides,
5We note that deductions claimed for "gifts" and "continuing
education" should have been claimed as "unreimbursed employee
expenses" rather than as "other expenses" on petitioner's
Schedule A.
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Last modified: May 25, 2011