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Mr. Obot also deducted state and local personal property
taxes of $1,634. For these to be allowed, Mr. Obot must show
that they were a state or local tax annually charged on personal
property based on its value. Sec. 164(a)(2), (b)(1). He offered
no proof that the personal property taxes he allegedly paid were
based on his property’s value, and so we agree with the
Commissioner that he cannot deduct them. Mr. Obot next claimed a
$155 public user fee and a $128 water bill. He did not point us
to any Code section that would make these deductible, and finding
none ourselves, we cannot allow him these deductions either. See
Deputy v. du Pont, 308 U.S. 488, 493 (1940).
The next two deductions--$1,433 in “County of Erie--County
and Town Tax” and $734 in “Real Property Tax and Sewer Rent Bill”
at least sound valid: real property taxes levied by state,
local, or foreign jurisdictions are deductible. Sec. 164(a)(1).
Mr. Obot did have bills for these two taxes, but he is a cash-
basis taxpayer, and so he must show that he paid each tax during
the year for which he’s claiming it as a deduction. Sec. 1.446-
1(c)(1)(i), Income Tax Regs. While he submitted these two bills
as proof, they showed no amount as having been paid. Mr. Obot
had no canceled checks or receipts to prove payment, and the
bills alone are insufficient proof. He doesn’t get these
deductions either.
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Last modified: May 25, 2011