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142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Deductions are
strictly a matter of legislative grace, and petitioner bears the
burden of proving that it is entitled to any deductions claimed.
INDOPCO, Inc. v. Commissioner, supra.
Section 162(a) generally allows a deduction for ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business. In general, an expense is
ordinary if it is considered normal, usual, or customary in the
context of the particular business out of which it arose. Deputy
v. du Pont, 308 U.S. 488, 495 (1940). Ordinarily, an expense is
necessary if it is appropriate and helpful to the operation of
the taxpayer's trade or business. Commissioner v. Tellier, 383
U.S. 687, 689 (1966); Carbine v. Commissioner, 83 T.C. 356, 363
(1984), affd. 777 F.2d 662 (11th Cir. 1985).
Section 263(a) provides that “No deduction shall be allowed
for--(1) Any amount paid out for new buildings or for permanent
improvements or betterments made to increase the value of any
property or estate.” Section 263(a) denies a deduction under
section 162(a) when the amount paid or incurred: (1) Creates or
enhances a separate and distinct asset, see Commissioner v.
Lincoln Sav. & Loan Association, 403 U.S. 345, 354 (1971); Wells
Fargo & Co. and Subs. v. Commissioner, 224 F.3d 874, 882 (8th
Cir. 2000), affg. in part and revg. in part 112 T.C. 89 (1999);
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