John DiFronzo - Page 4

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          First, there is a cashier's check for $50,000 made out to Carl M.           
          Walsh and remitted by John DiFronzo.  The check is dated January            
          18, 1993.  With it is a deposit slip for Carl M. Walsh dated                
          January 25, 1993.  Among the checks listed for deposit is one for           
          $50,000.                                                                    
               Second, there is a check for $25,000 from RoseMary DiFronzo            
          made payable to Carl M. Walsh.  That check is dated April 9, 1993           
          and is payable from the account of RoseMary DiFronzo.  On April             
          12, 1993, a deposit was made on behalf of Carl M. Walsh.                    
          Included in that deposit was a check for $25,000.  Third, there             
          is a deposit slip from Carl M. Walsh dated May 11, 1993.  Only              
          one check is listed, for $50,000.  The deposit slip is                      
          accompanied by two check stubs from the register of Carl M.                 
          Walsh.  Beside check stub 535, dated May 15, 1993, there is a               
          notation under deposits "5/11/93 DiFronzo 50,000".                          
               Section 162(a) allows as a deduction "all the ordinary and             
          necessary expenses paid or incurred during the taxable year in              
          carrying on a trade or business".  For a deduction for legal                
          expenses, the taxpayer must also prove that he paid for the                 
          services performed for him.  Lussy v. Commissioner, T.C. Memo.              
          1995-393, affd. without published opinion 114 F.3d 1201 (11th               
          Cir. 1997).  Petitioner's filing status is married filing                   
          separate.  As a result, he must demonstrate that he alone made              
          all of the payments.                                                        





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