Timothy E. Butler - Page 17

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          itemized deductions that are allowable for that year.3                      
          Accordingly, the refund of State income tax in the amount of $414           
          in 1994 is not includable in petitioner's gross income for that             
          year.4                                                                      
               Issues (7) and (8): Schedule E Deductions - 1994                       
               Respondent disallowed entirely Schedule E deductions claimed           
          by petitioner in 1994 for cleaning and maintenance, repairs, and            
          utilities.  At trial, respondent conceded that petitioner had               
          substantiated, and was therefore entitled to deduct, expenses for           
          cleaning and maintenance in the amount of $600 and repairs in the           
          amount of $1,350.  The balance of such deductions, and the entire           
          deduction claimed for utilities, remain in issue.                           
               At trial, petitioner introduced no persuasive evidence that            
          he is entitled to deductions for cleaning and maintenance and for           
          repairs in excess of the amounts conceded by respondent.                    
          Accordingly, we sustain respondent's determination as modified by           
          respondent's concession at trial.                                           
               Insofar as the deduction for utilities is concerned, the               
          record does not permit a finding that petitioner expended the               
          amount claimed on his return (i.e., $800).  However, we are                 
          satisfied that petitioner did, in fact, incur expenses for                  

          3  For 1993, an individual with a "single" filing status is                 
          entitled to a standard deduction in the amount of $3,700.  Sec.             
          63(c).  This amount exceeds petitioner's allowable itemized                 
          deductions (i.e., State income tax in the amount of $2,043).                
          4  See supra note 2.                                                        




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