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The burden of showing a right to a claimed deduction rests
with the taxpayer. INDOPCO, Inc. v. Commissioner, 503 U.S. 79,
84 (1992); see also Banker v. Commissioner, T.C. Memo. 1999-351.
The taxpayer must establish that the expenses deducted are
ordinary and necessary and must maintain records sufficient to
substantiate the amounts of the deductions claimed. Sec. 6001;
sec. 1.6001-1(a), Income Tax Regs. If the taxpayer does not
retain the required records, the burden of proof does not shift
to respondent. Sec. 7491(a)(2)(A) and (B).
Petitioner claimed deductions for advertising expenses, bad
debt expenses, car and truck expenses, mortgage interest, repairs
and maintenance expenses, and supplies expenses on his Schedule C
in 2001. Petitioner provided no substantiation for any
advertising, bad debt, repairs and maintenance, or supplies
expenses. Therefore, petitioner is not allowed to deduct any of
these claimed expenses on his Schedule A for 2001.
Petitioner deducted mortgage interest of $14,803 on his
Schedule A for 2001 and an additional amount on Schedule C.
Respondent received information returns for petitioner showing
total mortgage interest paid of $14,802 and allowed that amount
on petitioner’s Schedule A. Petitioner did not provide any
evidence showing that the deductible amount should be greater
than that allowed by respondent.
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Last modified: May 25, 2011