- 8 - accountants, or other tax professionals, he did “informally” seek the advice of professionals with whom he was acquainted. OPINION Advertising Expenses The principal issue in this case is whether petitioners are entitled to deduct, as an advertising expense under section 162, the value of the uncompensated medical services Dr. Remy provided to his patients during the years in issue. Section 162 allows an individual to deduct all ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business. Sec. 162(a). Respondent does not question petitioners' method of valuing Dr. Remy's telephone services, and does not seriously question the relationship of those services to Dr. Remy's trade or business. Respondent asserts that the deductions are not allowable because the amounts that petitioners seek to deduct are not expenditures that petitioners, cash basis taxpayers, "paid" during any of the years in issue, as required by section 162(a). We agree with respondent. We start with the principle that deductions are a matter of legislative grace and are to be narrowly construed. See, e.g., Commissioner v. Jacobson, 336 U.S.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011