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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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