Susan J. Bokhari O'Neil - Page 4

                                        - 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.                                                                 



Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011