- 7 -
In a notice of deficiency dated January 16, 1997, respondent
disallowed petitioner's total claimed Schedule C advertising
expense deduction for the 1993 tax year. Respondent contends
that petitioner's claimed advertising expenses were actually
lobbying and political expenditures which are disallowed by
section 162(e).
OPINION
Deductions are a matter of legislative grace. See New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). A
taxpayer bears the burden of proving that he is entitled to
claimed deductions. See Welch v. Helvering, 290 U.S. 111, 115
(1933).
Petitioner has advanced two alternative arguments in support
of his claim that the expenses incurred should be allowable as an
ordinary and necessary business deduction: (1) Petitioner
contends that the claimed deduction represents Schedule C
business expenses incurred by petitioner in his business as an
entertainer; or, alternatively, (2) petitioner contends that the
expenditures represent unreimbursed employee business expenses
which are deductible on Schedule A.
1. Section 162(e)(2)(B) Exclusion
Relying on Section 162(e), respondent contends that
petitioner would not be entitled to deduct his claimed expenses
even if they otherwise had been allowable deductions under
section 162(a).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011