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Deductions are a matter of legislative grace, and a taxpayer
seeking a deduction has the burden of overcoming the presumption
of correctness that attaches to respondent's factual
determinations in the notice of deficiency. Rule 142(a); New
Colonial Co. v. Helvering, 292 U.S. 435, 440 (1934); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Section 162(a)5 allows a deduction for "all the ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business," including a trade or business
as an employee. See, e.g., Lucas v. Commissioner, 79 T.C. 1, 6-7
(1982). Under section 6001 and section 1.6001-1(a) and (e),
Income Tax Regs., a taxpayer must keep such permanent books of
account or records as are sufficient to establish the amount of
gross income, deductions, credits, or other matters required to
be shown on the tax return. If the books and records are not
adequate to establish the amounts of deductions or credits, but
there is evidence that something more should be allowed than
respondent allowed, then we are required to make some estimate of
5
Sec. 162 provides, in relevant part, as follows:
SEC. 162. TRADE OR BUSINESS EXPENSES.
(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, * * *
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