James E. Harrell - Page 5




                                        - 4 -                                         

          however, must have some basis upon which an estimate can be made.           
          Vanicek v. Commissioner, 85 T.C. 731, 742-743 (1985).                       
               Petitioner reported $4,280 of medical and dental expenses on           
          his Schedule A.  Respondent conceded that petitioner                        
          substantiated $887 of these expenses for medical insurance.  At             
          trial, petitioner substantiated that he paid $2,500 to a doctor.            
          Under section 213, individuals are entitled to an itemized                  
          deduction for amounts paid for medical care to the extent that              
          these expenses exceed 7.5 percent of the individual's adjusted              
          gross income.  Petitioner's adjusted gross income was $41,471.              
          Therefore, petitioner may deduct medical expenses only to the               
          extent that they exceed $3,110.  The substantiated expenses                 
          totaled $3,387.  We find that petitioner may deduct $277 for                
          medical expenses.                                                           
               Petitioner claimed $1,450 of taxes paid as an itemized                 
          deduction on his return.  Respondent conceded $1,230 of this                
          amount was deductible.  An itemized deduction is allowable under            
          section 164(a) for certain types of taxes.  Petitioner did not              
          substantiate any additional amount.  We find that petitioner may            
          deduct $1,230 for taxes.                                                    
               Petitioner deducted $4,105 of home mortgage interest expense           
          on his return.  In 1995, in lieu of foreclosure, petitioner's               
          house was sold.  The settlement statement shows that interest               
          from January 1, 1993, to April 1, 1995, was paid with the                   





Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011