- 7 - is one that relates to a transaction “of common or frequent occurrence in the type of business involved”, Deputy v. du Pont, 308 U.S. 488, 495 (1940), and a necessary expense is one that is “appropriate and helpful” for “the development of the petitioner’s business,” Welch v. Helvering, 290 U.S. 111, 113 (1933). Respondent has conceded that petitioner incurred a portion of the deducted expenses, but argues that they are not ordinary and necessary business expenses. To substantiate the remaining expenses, petitioner presented checks and check duplicates in amounts totaling $4,481.42 for payments for rent, utilities, and office supplies. In addition, he provided credit card statements on which he made notations indicating the types of certain expenses, such as gas, lodging, or phone calls. However, assuming arguendo that we would accept these documents as adequate substantiation, we find that these expenses (and those expenses for which respondent has not challenged substantiation) are not ordinary and necessary business expenses. Petitioner’s vague and uncertain testimony provided no connection between the expenses and petitioner’s employment, and it is evident that many if not all of the expenses are of an inherently personal nature, nondeductible under section 262(a). Petitioner argues that his employment in Minnesota was temporary, and that many of the expenses he incurred and claimedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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