- 20 -
$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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