- 8 - or end of 1992. Respondent's analysis also was based on the assumption that petitioners spent $63,297 in cash on the expenses, other than depreciation, which they claimed on their return for Harris Enterprises. OPINION We decide the subject issues seriatim. We bear in mind that petitioners bear the burden of proof, Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933), and that Congress has required taxpayers to keep sufficient records to substantiate any deduction that is otherwise allowed by the Code, sec. 6001; see also New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). We also bear in mind that deductions are strictly a matter of legislative grace, and that petitioners must prove their entitlement to the disputed deductions. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Rockwell v. Commissioner, 512 F.2d 882, 886 (9th Cir. 1975), affg. T.C. Memo. 1972-133; see also New Colonial Ice Co. v. Helvering, supra at 440 ("a taxpayer seeking a deduction must be able to point to an applicable statute and show that * * * [the taxpayer] comes within its terms"). Petitioners rely mainly on the testimony of Mr. Harris to attempt to meet their burden of proof. 1. Taxable Interest Income Respondent determined that petitioners failed to include in their gross income $11,801 of interest income received by NBA onPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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