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$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.
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