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expenses to the rental use of the San Bruno residence, the
expenses reflected on the Schedule E were paid or incurred by
petitioner during 1991 for the purposes indicated.
In the notice of deficiency respondent determined that the
above-listed deductions were limited to the rental income
reported on the Schedule E and adjusted petitioner's 1991 taxable
income accordingly, explaining:
It is determined that the $22,594 rental loss
claimed on your 1991 return is not allowable. * * *
section 280A limits rental expenses to rental income on
rental use of personal residences when the rental use
exceeds 15 days. The balance of the mortgage interest
and real estate taxes have been allowed as deductions
on Schedule A.
Discussion
As we have often stated, deductions are a matter of
legislative grace, and a taxpayer claiming a deduction must prove
entitlement to it. Rule 142(a); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934). Such proof includes
establishing that any and all of the statutory requirements
necessary for the allowance of the deduction claimed have been
satisfied.
The type of deductions claimed on petitioner's Schedule E
are generally allowable under section 162(a) or section 212(1).
Regardless of which section is applicable, a distinction that is
unimportant here, because petitioner used the San Bruno residence
as his residence during 1991, the deductions claimed on the
Schedule E are subject to section 280A(a), which states that,
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