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amounts allowed in the notice of deficiency.4 Petitioner asserts
that the amounts claimed for taxes and interest have been
sufficiently substantiated, both through his oral testimony and
the documentary evidence presented at trial.
As a general rule, the Commissioner's determinations are
presumed correct, and the taxpayer bears the burden of proving
that those determinations are erroneous. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933); Nickeson v. Commissioner,
962 F.2d 973, 976 (10th Cir. 1992), affg. Brock v. Commissioner,
T.C. Memo. 1989-641. Moreover, deductions are a matter of
legislative grace, and the taxpayer bears the burden of proving
that he is entitled to any deduction claimed. Rule 142(a); New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). This
includes the burden of substantiation. Hradesky v. Commissioner,
65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d 821 (5th Cir.
1976).
Failure to prove the exact amount of an otherwise deductible
item is not fatal, because generally, unless precluded by section
274, we may estimate the amount of such an expense and allow the
deduction to that extent. Finley v. Commissioner, 255 F.2d 128,
4 In the notice of deficiency, respondent allowed petitioner
to deduct the following amounts:
Item 1979 Amount Allowed 1980 Amount Allowed
Taxes $5,091 $422
Interest 1,010 -0-
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