Valerie Jean Genck - Page 5

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          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 petitioner bears the burden of             
          proving her 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).                    
               Section 162(a) allows a deduction for the ordinary and                 
          necessary expenses paid or incurred during the taxable year in              
          carrying on a trade or business.  Although we will address each             
          of petitioner's claimed business expense deductions separately,             
          infra, we generally find that petitioner's testimony was entirely           
          credible and do not hesitate to rely on it.  Petitioner appeared            
          at trial in possession of well-organized written documentation of           
          all of the claimed expenses.  In our view, respondent's counsel             
          accepted her testimony as adequate substantiation in light of his           
          repeated failure to ask her to corroborate her testimony with               
          documentary evidence.  Moreover, the statutory notice of                    
          deficiency does not reveal respondent's basis for the blanket               
          disallowance of the claimed deductions.  Significantly,                     
          respondent's counsel was unable to state, at trial, whether or              
          not substantiation of the amounts claimed was an issue in the               
          case.  We, therefore, only address the question of whether she is           
          entitled to deductions for the amounts paid.                                








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