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than Schedule A. Petitioner was allowed the standard deduction
under section 63(c) instead of the claimed itemized deductions.
Petitioner’s Schedule C expenses as reported on the original
return were adjusted to allow $50 for meals, $1,500 for car and
truck expenses (calculated by multiplying the standard mileage
rate by 5,000 miles), $100 for travel expenses, $756 for
memberships, and $500 for parking. Respondent disallowed all of
petitioner’s charitable contributions. The remainder of
petitioner’s Schedule C expenses was not adjusted. Respondent
determined $1,713 for self-employment tax and allowed a
corresponding deduction for one-half of that tax. Respondent
also determined the addition to tax under section 6651(a)(1).
Deductions are a matter of legislative grace, and the
taxpayer bears the burden of proving entitlement to any
deductions claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner,
503 U.S. 79, 84 (1992). The taxpayer is required to identify
each deduction available and show that all requirements have been
met. New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440
(1934). It is also the taxpayer’s responsibility to maintain
records sufficient to enable the Commissioner to determine the
correct tax liability. Sec. 6001; sec. 1.6001-1(a), Income Tax
Regs.; Higbee v. Commissioner, 116 T.C. 438 (2001). The taxpayer
must substantiate both the amount and purpose of claimed
deductions. Higbee v. Commissioner, supra. Moreover, the burden
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