Kenneth & Linda J. Logie - Page 6

                                        - 6 -                                         

          burden of proving that the amounts at issue were properly                   
          designated as a rental allowance by official church action before           
          payment.  See Rule 142(a).  The record is devoid of any such                
          evidence.2  To the extent it addresses this issue, Mrs. Logie's             
          testimony suggests that the characterization of part of                     
          petitioners' income as parsonage allowances was an afterthought.3           
               Accordingly, we sustain respondent's determinations with               
          respect to the amounts claimed as parsonage allowances.  See                
          Boyer v. Commissioner, 69 T.C. 521, 533 (1977); Eden v.                     
          Commissioner, 41 T.C. 605, 607 (1964).                                      

          Schedule C Deductions                                                       
               Respondent disallowed a duplicative $1,400 deduction for               
          supplies expenses and disallowed $1,102 of claimed telephone                
          expenses as being personal in nature.  The Commissioner's                   
          determinations are presumed correct, and the taxpayer bears the             
          burden of proving that those determinations are erroneous.  Rule            
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  Although             
          petitioners' brief alludes in its statement of facts to                     
          respondent's disallowance of these claimed Schedule C expenses,             

               2  Petitioners' W-2 forms do not constitute substantiation             
          in this regard because, among other reasons, they were issued               
          after the payments were made.                                               
               3  Mrs. Logie testified that she had "been researching the             
          Internal Revenue Code and * * * read about the housing allowance"           
          and felt it "would be unjust and unfair not to include that as              
          part of" their joint Federal income tax return.                             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011