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Memo. 2006-1. Therefore, the cost of the program is not an
eligible access expenditure within the meaning of section 44(c),
and, consequently, they do not qualify for the disabled access
credit. Respondent’s determination disallowing the credit is
sustained.
Section 162 Trade or Business Activity
Deductions are a matter of legislative grace, and taxpayers
bear the burden of proving that they are entitled to any
deductions claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner,
503 U.S. 79, 84 (1992). Taxpayers are allowed a deduction for
ordinary and necessary expenses paid or incurred in carrying on a
trade or business. Sec. 162(a).
Whether an expenditure is ordinary and necessary is
generally a question of fact. Commissioner v. Heininger, 320
U.S. 467, 475 (1943). Generally, for an expenditure to be an
ordinary and necessary business expense the taxpayer must show a
bona fide business purpose for the expenditure; there must be a
proximate relationship between the expenditure and the business
of the taxpayer. Challenge Manufacturing Co. v. Commissioner, 37
T.C. 650 (1962); Henry v. Commissioner, 36 T.C. 879 (1961).
To be "necessary" within the meaning of section 162, an
expense need be "appropriate and helpful" to the taxpayer's
business. Welch v. Helvering, 290 U.S. 111, 113 (1933). The
requirement that an expense be "ordinary" connotes that "the
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