10 the base amount, $32,000, by $10,938. One-half of this excess is equal to $5,469, which amount is less than one-half of the Social Security benefits received, $10,687. Respondent adjusted petitioner's income by $5,461 pursuant to section 86. Respondent is sustained on this issue. Deduction for Taxes Deductions are a matter of legislative grace, and petitioners must prove entitlement to any deductions claimed. New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Section 262 prohibits the deduction of personal, living, or family expenses. Prior to 1986, section 164(a)(4) allowed a deduction for State and local sales taxes paid during the taxable year. Section 164(a)(4) was repealed by section 134(a)(1) of the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2116. Petitioner testified that the taxes, for which he claimed a deduction in the amount of $998, were State sales taxes and taxes imposed on utilities purchases. These taxes are not deductible under section 164. Respondent is sustained on this issue. Other Miscellaneous Deductions Petitioner claimed a deduction in the amount of $1,010 paid in connection with his sister-in-law's burial and service held at sea. Petitioner seems to argue that because this was required in accordance with his sister-in-law's beliefs, the amount represents a religious expenditure or charitable contribution.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011