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“appropriate” or “helpful” in the development of the taxpayer's
business. Welch v. Helvering, supra. Unless expressly provided
for, section 262 prohibits deductions for personal, living, or
family expenses.
The basis of respondent’s determination that the expenses at
issue are not ordinary and necessary appears to be that the
expenses were personal in nature and not related to petitioner’s
business of selling generators. Based on petitioner’s
explanations at trial, we are satisfied that the following
expenses are ordinary and necessary expenses incurred in
petitioners’ business:
Advertising $94
Car & truck expenses 256
Depreciation 1,600
Office expenses 103
Rent 12,600
Utilities 2,755
Other 724
Total 18,132
We found credible petitioner’s testimony that the San Jose
property was used for business purposes and not as their personal
residence despite the fact that petitioners rented the property
under a residential lease that provides that the property is to
be “used only as a private residence”. With respect to the
expenses related to petitioners’ truck (depreciation, car &
truck, and $524 of “other” expense), petitioner testified that he
and his wife used the truck to transport solar panels, to
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