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taxpayer may not be considered as married at the close of the
taxable year. Sec. 2(b)(1). Therefore, for this reason and the
other reasons set forth above, we hold that petitioner is not
entitled to head of household filing status for 1994.
3. Itemized Deductions
Exclusions and deductions from income are a matter of
legislative grace and are narrowly construed. INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934). Taxpayers are required to
substantiate claimed deductions and credits by maintaining the
records needed to establish the amounts of such items. Sec.
6001; Meneguzzo v. Commissioner, 43 T.C. 824, 831-832 (1965);
sec. 1.6001-1(a), Income Tax Regs.
A. Unreimbursed Employee Expenses
Section 162(a) permits the deduction of "ordinary and
necessary" expenses paid or incurred during the taxable year in
carrying on any trade or business. The performance of services
as an employee constitutes a trade or business. O'Malley v.
Commissioner, 91 T.C. 352, 363-364 (1988). An ordinary expense
is one that is common and acceptable in the particular business.
Welch v. Helvering, 290 U.S. 111, 113-114 (1933). A necessary
expense is an expense that is appropriate and helpful in carrying
on a trade or business. Heineman v. Commissioner, 82 T.C. 538,
543 (1984).
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