Andrea Cipriano - Page 13




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               We now turn to petitioner’s claim that she is entitled to an           
          additional $79,688 deduction, or some part thereof, for fees paid           
          to attorneys, accountants, and appraisers.  The parties herein              
          make no argument as to the placement of the burden of proof nor             
          as to how section 7491(a) applies, if at all, to a new issue.               
               In general, attorney’s fees and other expenses relating to a           
          divorce represent personal expenses and are nondeductible to                
          either spouse.  See United States v. Gilmore, 372 U.S. 39, 49               
          (1963).  A deduction under section 212, however, may be allowed             
          for expenses incurred for the production or collection of income,           
          such as expenses relating to the right to receive interest                  
          income.                                                                     
               The evidence in support of the $79,688 paid to attorneys,              
          accountants, and appraisers does not indicate the date the fees             
          were actually paid by petitioner.  From the invoices provided by            
          petitioner, it appears that most of the bills were paid by                  
          petitioner before the years in dispute.  Furthermore, the                   
          invoices that do relate to 1994 and 1996 fail to differentiate              
          between amounts paid in connection with petitioner’s divorce and            
          amounts paid, if any, to obtain the receipt of interest income.             
               For 1994 and 1996, no part of the claimed $79,688 is                   
          deductible by petitioner.                                                   
               Section 6662(a) imposes a penalty of 20 percent on the                 
          portion of an underpayment of tax attributable to negligence or             






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