Edward C. Tietig - Page 9




                                        - 9 -                                         
          $371,600.  Interest was provided for at 10 percent.                         
          Additionally, petitioner agreed to make principal only payments             
          of $5,000 to Mark Tietig each month beginning November 1, 1992.             
               There was a dispute between Mark Tietig and a law firm over            
          fees incurred in petitioner’s bankruptcy case.12  The settlement            
          agreement provided that if it was determined that Mark Tietig               
          owed any additional attorney’s fees, then petitioner would pay              
          them to Mark Tietig, and this amount would be added to the amount           
          petitioner owed Mark Tietig under the original 1983 promissory              
          note and agreement and secured by the same collateral.                      
               B.  Discussion                                                         
               Deductions are a matter of legislative grace, and the burden           
          of showing the right to deductions is on the taxpayer.  Rule                
          142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992).              
          Petitioner argues that he is entitled to a $32,241 deduction in             
          1993 for payments that he allegedly made to his son Mark Tietig.            
          The deduction was not claimed on petitioner’s Federal income tax            
          return for that year or disallowed by respondent in his notice of           
          deficiency; rather, the issue was raised for the first time by              
          petitioner in his petition to the Tax Court.  Petitioner did not            
          explain in his petition or on brief how he arrived at $32,241 as            
          a deduction or why it is deductible.                                        



               12Petitioner filed for bankruptcy on Sept. 22, 1988.                   





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011