Joseph Baldwin Campbell - Page 17

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            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.                            

            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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