- 4 - Respondent's determinations in the statutory notice of deficiency are presumed to be correct, and petitioners bear the burden of proving otherwise. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Moreover, deductions are strictly a matter of legislative grace, and petitioners bear the burden of proving their entitlement to any deductions claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Office Expenses - Computer Petitioner claimed a deduction for office expenses in the amount of $3,340 on his Schedule C. Respondent disallowed $2,450 of the claimed deduction. The parties agree that the claimed and disallowed office expenses include an amount claimed for the purchase of a computer. Petitioner purchased an Apple Macintosh computer on May 15, 1992 for $2,013 (not including Minnesota sales tax of 6.5 percent). He purchased the computer through petitioner wife's employer because of the discounts offered by Apple to employees of educational institutions. Respondent's position is that the cost of the computer is generally not deductible because it is subject to the section 168 depreciation rules. We agree. Respondent further argues that petitioner failed to make a proper section 179 election which is required for the computer to be treated as a currently deductible expense. Petitioner contends that it is unfair to hold that aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011