Benigno Antonio Gasparutti - Page 4

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          $9,602.58 in unreimbursed employee expenses.6  At trial,                    
          petitioner explained that the unreimbursed employee expenses                
          consisted of his rental payments at the Ontario apartment and the           
          traveling expenses he incurred going back to Aliso Viejo on                 
          weekends.  Petitioner also contended that he should not have to             
          pay tax on Social Security and Medicare withholdings since they             
          are not considered income.                                                  
               Respondent disallowed the expenses claimed on Schedule A               
          and, instead, allowed the standard deduction.                               
               a. Medical Expenses                                                    
               Section 213(a) provides that “There shall be allowed as a              
          deduction the expenses paid during the taxable year, not                    
          compensated for by insurance or otherwise, for medical care of              
          the taxpayer, his spouse, or a dependent * * * to the extent that           
          such expenses exceed 7.5 percent of adjusted gross income.”  The            
          taxpayer must substantiate any deductions claimed under section             
          213 by furnishing the name and address of each person to whom               

          4(...continued)                                                             
          of $1,352.45, California State disability insurance withheld of             
          $412.97, and “buyer’s taxes”, which petitioner estimated at $750.           
          Petitioner agrees that “buyer’s taxes” are the equivalent of a              
          sales tax.                                                                  
          5  This amount includes Social Security tax withheld of                     
          $2,456.26, Medicare tax withheld of $574.45, and Social Security            
          benefits allegedly repaid by petitioner of $905.                            
          6  This is after the 2 percent of adjusted gross income                     
          limitation.  Petitioner did not state on his return what these              
          expenses encompassed.                                                       




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