Frank de Bane and Kathleen Naber-de Bane - Page 5

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          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).  Personal, family, and                 
          living expenses, on the other hand, generally are not deductible.           
          Sec. 262(a).                                                                
               First, we are not convinced that petitioner was engaged in a           
          trade or business in the year in issue.  The primary evidence               
          that petitioner was engaged in any business at all is                       
          petitioner’s brief and conclusory testimony.  The testimony was             
          unclear, but it seems that petitioner’s contention is that the              
          Schedule C was filed not for one business, but for two--an                  
          antique clock business which was not identified on the return in            
          addition to the research and publication business which was                 
          identified.  At one point, however, petitioner testified that the           
          antique clock business was “dead” and that none of the gross                
          income on the Schedule C was for that business.  As for the                 
          $1,875 of income that was reported, he could not provide                    
          sufficient details concerning its source.  He testified that this           
          amount was the income he received from activity such as reviewing           
          manuscripts and selling textbooks, but could not name the                   
          publishing companies from which the income was received.  The               
          only other evidence which indicates the existence of a business             
          consists of checks drawn on two bank accounts.  The accounts each           

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