- 17 -
T.C. 374, 377 (1970). To qualify for the deduction, an expense
must be both "ordinary" and "necessary" within the meaning of
section 162(a). Deputy v. duPont, 308 U.S. 488, 495 (1940).
Whether the amount disallowed by respondent constitutes an
ordinary and necessary expense incurred in the operation of the
taxpayer's trade or business as an employee is a question of fact
to be determined from the evidence presented, with the burden
being on the taxpayer to overcome the presumed correctness of
respondent's determination. Rule 142(a); Welch v. Helvering, 290
U.S. 111 (1933); Allen v. Commissioner, T.C. Memo. 1988-166.
Deductions are a matter of legislative grace, and the
taxpayer bears the burden of proving entitlement to any
deductions claimed. New Colonial Ice Co. v. Helvering, 292 U.S.
435, 440 (1934). Furthermore, a taxpayer is required to maintain
records sufficient to establish the amount of his or her income
and deductions. Sec. 6001. Under certain circumstances, where a
taxpayer establishes entitlement to a deduction, but does not
establish the amount of the deduction, the Court is permitted to
estimate the amount allowable. Cohan v. Commissioner, 39 F.2d
540 (2d Cir. 1930). However, there must be sufficient evidence
in the record to permit the Court to conclude that a deductible
expense was incurred in at least the amount allowed. Williams v.
10(...continued)
exceed 2 percent of the taxpayer's adjusted gross income. Tax
Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2085.
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