Robert Lyle Verity - Page 9

                                        - 8 -                                         
                          Expense             1999          2000                      
                    Lodging                  $17,523        $195                      
                    Meals and entertainment   5,151         554                       
                    Miscellaneous            2,245          -0-                       
                    Car expenses             -0-            1,026                     
                    Car lease                 -0-           437                       
                         Total               24,919         2,212                     
                                     Discussion                                       
               Generally, the Commissioner’s determinations are presumed              
          correct, and the taxpayer bears the burden of proving that those            
          determinations are erroneous.6  Rule 142(a); Welch v. Helvering,            
          290 U.S. 111, 115 (1933).  Moreover, deductions are a matter of             
          legislative grace, and the taxpayer bears the burden of proving             
          he or she is entitled to any deduction claimed.  INDOPCO, Inc. v.           
          Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.               
          Helvering, 292 U.S. 435, 440 (1934); Welch v. Helvering, supra.             
          This includes the burden of substantiation.7  Hradesky v.                   
          Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d              
          821 (5th Cir. 1976).                                                        
               Section 162(a)(2) allows a taxpayer to deduct traveling                
          expenses, including amounts expended for meals and lodging, that            
          are paid or incurred while “away from home” in the pursuit of a             


               6  We render a decision on the merits based on the                     
          preponderance of the evidence, without regard to the burden of              
          proof under sec. 7491(a).                                                   
               7  For 1999, respondent determined that petitioner                     
          substantiated payment of the deductions at issue.  For 2000, we             
          conclude on the basis of the record that petitioner substantiated           
          all of the deductions claimed.  Accordingly, substantiation is              
          not in issue.                                                               




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