Harold A. Lange - Page 20

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          $4 "computer filing fee".  All are costs for services rendered in           
          connection with obtaining the refinancing and are not currently             
          deductible.9  See, e.g., Goodwin v. Commissioner, supra, at 440-            
          441; Trivett v. Commissioner, T.C. Memo. 1977-161, affd. 611 F.2d           
          655 (6th Cir. 1979).                                                        
               The remaining closing costs that petitioner seeks to deduct            
          are described in the settlement sheet as $32 in "Recording Fees"            
          and $87.95 in "State tax/stamps".  State and local transfer and             
          recordation taxes are not deductible expenses.  Gibbons v.                  
          Commissioner, T.C. Memo. 1976-125.                                          
          V.  Section 6654 Addition to Tax                                            
             Respondent determined that petitioner was liable for an                  
          addition to tax pursuant to section 6654 for failure to pay                 
          estimated tax.  Under section 7491(c), respondent bears the                 
          burden of production with respect to petitioner's liability for             
          an addition to tax.  Once respondent has met that burden, it is             
          petitioner's burden to show exculpatory factors such as                     
          reasonable cause or that respondent's determination is                      
          incorrect.  See Higbee v. Commissioner, 116 T.C. 438, 446-447               
          (2001).                                                                     



               9 In the circumstances of this case, we need not decide                
          whether any portion of the closing costs is amortizable over the            
          life of the refinancing loan, as there is no evidence concerning            
          the loan's term nor proof that the proceeds of the loan were used           
          for business or investment rather than personal purposes.                   




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