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professional writer and engaged in his writing activity with a
profit objective.
2. Writing Activity Expenses
Section 162(a) allows the deduction of “ordinary and
necessary” expenses paid or incurred during the taxable year in
carrying on any trade or business. Whether an expenditure is
ordinary and necessary is a question of fact. See Commissioner
v. Heininger, 320 U.S. 467, 475 (1943). An ordinary and
necessary expense is one which is appropriate and helpful to the
taxpayer’s business and which results from an activity which is a
common and accepted practice. See Boser v. Commissioner, 77 T.C.
1124, 1132 (1981), affd. without published opinion (9th Cir.
1983).
Deductions are a matter of legislative grace. See INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 84 (1992). Taxpayers must
keep sufficient records to establish deduction amounts. See sec.
6001; Meneguzzo v. Commissioner, 43 T.C. 824, 831-832 (1965).
Generally, except as otherwise provided by section 274(d), when
evidence shows that a taxpayer incurred a deductible expense, but
the exact amount cannot be determined, the Court may approximate
the amount. See Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d
Cir. 1930). The Court, however, must have some basis upon which
an estimate can be made. See Vanicek v. Commissioner, 85 T.C.
731, 742-743 (1985).
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