- 7 - According to petitioners, petitioner’s participation in the TRS program constituted a trade or business within the meaning of section 162, and the deductions claimed on the Schedule C should be allowed. According to respondent, petitioner’s participation in the TRS program did not constitute a trade or business and, with minor exceptions, the expenses shown on the Schedule C are not otherwise deductible.2 For the following reasons, we agree with respondent. Petitioners bear the burden of proving that: (1) Petitioner’s participation in the TRS program constituted a trade or business within the meaning of section 162(a) during 2000; (2) the expenses underlying the deductions here in dispute were ordinary and necessary to that trade or business; and (3) the expenses were paid or incurred.3 Rule 142(a); 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, 290 U.S. 111 (1933). After attending a seminar conducted by Renaissance, petitioner submitted an application to participate in TRS. As an active TRS participant, petitioner was required to pay a monthly 2 At trial, respondent conceded that the “bonuses” of $2,914 petitioner received from Renaissance were not includable in petitioners’ income. 3 Under the circumstances, the burden of proof remains with petitioners in this case. See sec. 7491.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011