- 19 -
Petitioner has failed to show that he is entitled to claim
his mother as a dependent. Petitioner did not substantiate that
he provided over one-half of his mother's support, nor did he
provide any evidence that his mother's gross income was less than
the exemption amount. Thus, we sustain respondent on this issue
and hold that petitioner is not entitled to claim his mother as a
dependent.
Issue 6. Deductions
We next consider whether petitioner is entitled to various
claimed itemized deductions for the years at issue. Petitioner
claimed deductions for legal fees in connection with his
ownership of several restaurants in the amounts of $1,464,
$8,354, $10,004, and $3,000 for the tax years 1987, 1988, 1989,
and 1990, respectively.
Section 162(a) provides for a deduction for “ordinary and
necessary” expenses paid or incurred during the taxable year in
carrying on a trade or business. Sanford v. Commissioner, 50
T.C. 823, 826 (1968), affd. per curiam 412 F.2d 201 (2d Cir.
1969). An ordinary and necessary expense is one that is
appropriate and helpful to the taxpayer's business and that
results from an activity which is a common and accepted practice.
Boser v. Commissioner, 77 T.C. 1124, 1132 (1981), affd. without
published opinion (9th Cir. 1983). Legal fees are deductible
under section 162(a) if they arise in connection with or
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