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raised by respondent, the burden does not shift to respondent
under Rule 142.3
II. Corporate Card Charges
A. Ordinary and Necessary Business Expenses
Petitioners contend that the charges at issue qualified as
business expenses of RAF. Section 162 generally allows a
deduction for ordinary and necessary business expenses. In
general, an expense is ordinary under section 162 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). An expense is necessary if it is
appropriate and helpful to the taxpayer’s trade or business.
Commissioner v. Tellier, 383 U.S. 687 (1966). If an expenditure
is primarily motivated by personal considerations, no deduction
for it will be allowed. See Henry v. Commissioner, 36 T.C. 879,
884 (1961). Deductions are a matter of legislative grace, and
the taxpayer bears the burden of proving that it is entitled to
any deduction claimed. Rule 142(a); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934). This includes the burden of
3Before and during trial, petitioners made arguments with
respect to shifting the burden of proof to respondent under sec.
7491. At the conclusion of trial, petitioners orally moved that
the burden be shifted to respondent. The Court requested that
the parties address this issue in their briefs. For the reasons
discussed supra, petitioners’ oral motion will be denied.
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