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invoice for legal services submitted to Mrs. Reynolds requesting
payment of $175 and a copy of a bank statement on account No.
302386-8 that shows that check No. 242 for $2,500 was presented to
the bank for payment on January 10, 1995. A copy of petitioners’
check register indicates that check No. 242 was written on
December 27, 1994. Petitioners did not produce the original or a
copy of check No. 242.
The evidence does not show that the invoice for $175 was paid
in 1994 or that check No. 242 for $2,500 was delivered in 1994.
The amounts are therefore not deductible for that year.7 See Odom
v. Commissioner, supra; McCoy v. Commissioner, supra.
Issue 5. Various Schedule C Expenses
Section 162 generally allows a deduction for ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on a trade or business. Generally, no deduction is
allowed for personal, living, or family expenses. See sec. 262.
The taxpayer must show that any claimed business expenses were
incurred primarily for business rather than social reasons. See
Rule 142(a). To show that an expense was not personal, the
taxpayer must show that the expense was incurred primarily to
benefit his business, and there must have been a proximate
7 Because petitioners have not shown that the payments were
made in 1994, we need not address respondent’s arguments that
Mrs. Reynolds’ legal expenses are not otherwise deductible, or if
deductible, must be claimed on Schedule A.
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