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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 Section 164(a)(4) was repealed by section 134(a)(1) of the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.
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