Patrick F. Philippi - Page 5

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          under section 7491(a).  With respect to any deductions that                 
          petitioner is claiming for each of the years at issue, deductions           
          are strictly a matter of legislative grace, and petitioner bears            
          the burden of proving that he is entitled to any deductions                 
          claimed.  INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992).            
               In support of his position that he is entitled (1) for the             
          taxable year 2000 to Schedule A deductions in excess of those               
          allowed by respondent, (2) for the taxable years 1999 and 2000 to           
          Schedule C deductions claimed in his 1999 return and his 2000               
          return, respectively, and (3) for the taxable year 1999 or the              
          taxable 2000 to a claimed rental loss deduction,3 petitioner                
          relies on his testimony and certain exhibits.  We found peti-               
          tioner’s testimony to be general, conclusory, vague, and uncor-             
          roborated in material respects.  We shall not rely on peti-                 
          tioner’s testimony to support his position with respect to the              
          claimed deductions at issue.  The exhibits on which petitioner              
          relies to support his position with respect to those claimed                
          deductions consist of copies of (1) a letter from the Minnesota             
          Department of Revenue to petitioner with respect to his 1996                
          Minnesota income tax return, (2) a letter to petitioner from the            

               3The $200,000 rental loss deduction to which petitioner                
          contends he is entitled for the taxable year 1999 or the taxable            
          year 2000 relates to the same claimed loss as petitioner’s                  
          claimed $200,000 Schedule A loss and petitioner’s claimed                   
          $200,000 Schedule C loss.  Petitioner testified that since the              
          1980s he has been claiming the same $200,000 deduction in his tax           
          returns.                                                                    





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