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Deductions, which are strictly construed, are a matter of
legislative grace, and the burden of clearly showing the right to
the claimed deduction is on the taxpayer. INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992). Section 219 permits,
subject to limitations, a deduction for a qualified retirement
contribution. Section 162 permits a deduction for ordinary and
necessary expenses paid or incurred in carrying on a trade or
business.
There is no evidence in this record indicating that a
contribution was made to a qualified retirement plan during the
year in issue or that petitioner paid or incurred expenses in
carrying on a trade or business. There are neither documents nor
testimony to establish entitlement to the claimed deductions.
Accordingly, petitioner is not entitled to the claimed $2,000
deduction for a contribution to an IRA or the claimed $5,302
deduction on Schedule C of the amended return.
In conclusion, we find in favor of respondent on all issues.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered for
respondent.
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Last modified: May 25, 2011