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Petitioner purportedly operates an art and flowers business.
Petitioner claims subtractions from gross receipts (e.g., returns
or allowances and cost of goods sold) as well as various expense
deductions associated with this business.
Petitioner, however, offered no evidence whatsoever to
substantiate deductions for the claimed amounts. Petitioner
failed to produce any records or documents that any of the
expenses were allegedly paid or incurred with respect to this
business. Moreover, petitioner failed to present any testimony,
however slight, to explain the expenses listed on Schedule C to
give us any basis upon which we could estimate such deductions.
On the basis of his revised Form 1040, petitioner would have this
Court infer facts not in the record to prove that he incurred
legitimate business expenses. The burden, however, is on
petitioner to substantiate his claimed deductions. We hold,
therefore, that petitioner failed to meet his burden of proof.
Consequently, petitioner is not entitled to subtract returns or
allowances and cost of goods sold from gross receipts, nor is he
entitled to any of his claimed expense deductions. See sec.
274(d); Williams v. United States, supra; Vanicek v.
Commissioner, supra; sec. 1.274-5T, Temporary Income Tax Regs.,
50 Fed. Reg. 46014 (Nov. 6, 1985).
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