- 8 -
1991, $80,984.85 in 1992, $64,876.17 in 1993, and $54,253.78 in
1994. Accordingly, on the basis of the record, we hold that Mr.
Bodwell earned total income for painting services from both Shell
and Town and Country as follows: $51,619.64 in 1989, $112,640.08
in 1990, $85,361.57 in 1991, $80,984.85 in 1992, $64,876.17 in
1993, and $54,253.78 in 1994.
C. Community Property
During the years in issue, petitioner and Mrs. Bodwell
resided in California, a community property State. Married
persons who reside in a community property State are generally
each required to report one-half of their community income for
Federal income tax purposes. See United States v. Mitchell, 403
U.S. 190 (1971); Drummer v. Commissioner, T.C. Memo. 1994-214,
affd. without published opinion 68 F.3d 472 (5th Cir. 1995).
Therefore, the income earned by petitioner for painting services
must be divided equally between petitioners during the years in
issue.
D. Deductions
Where taxpayers have trade or business income, they
ordinarily have business and other deductions. Deductions are
strictly a matter of legislative grace; however, petitioners bear
the burden of providing evidence to substantiate the claimed
deductions. See Rule 142(a); INDOPCO, Inc. v. Commissioner, 503
U.S. 79, 84 (1992). A taxpayer must keep sufficient records to
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