- 9 -
28, 49 (1949). Petitioners bear the burden of proving that
they are entitled to the deductions at issue. Rule 142(a),
Tax Court Rules of Practice and Procedure; New Colonial Ice
Co. v. Helvering, 292 U.S. 435, 440 (1934).
Section 162(a) provides in part as follows:
SEC. 162(a). In General.--There
shall be allowed as a deduction all the
ordinary and necessary expenses paid or
incurred during the taxable year in
carrying on any trade or business * * *
Generally, a cash basis taxpayer is not entitled to
deduct a trade or business expense under section 162(a)
unless the taxpayer has paid the expense during the taxable
year. Secs. 1.446-1(c)(1)(i), 1.461-1(a)(1), Income Tax
Regs; e.g., Magnon v. Commissioner, 73 T.C. 980, 1001-1002
(1980). This applies to all trade or business expenses,
including advertising expenses. E.g., Leone v. Commis-
sioner, T.C. Memo. 1993-51; Madden v. Commissioner, T.C.
Memo. 1989-162.
The value of labor performed by a taxpayer does not
constitute an amount "paid or incurred", and, for that
reason, a cash basis taxpayer is not entitled to deduct the
value of his or her own labor as a business expense under
section 162(a). Maniscalco v. Commissioner, 632 F.2d 6,
7-8 (6th Cir. 1980), affg. T.C. Memo. 1978-274; Grant v.
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