Ralph E. and Mildred E. Galyen - Page 13

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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               
          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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