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During 1999 and 2000, petitioner operated as a sole
proprietorship a nursing business. The nursing business
consisted of working as an expert witness (medical legal
consulting) and as a nurse practitioner.
Petitioner reported her nursing business expenses on
Schedule C, Profit or Loss From Business, of her 1999 and 2000
tax returns (nursing business expenses). Respondent issued to
petitioner a notice of deficiency for 1999 and 2000 that
disallowed some of the nursing business expenses in part and
other nursing business expenses in full. Petitioner filed a
petition challenging the disallowance of her nursing business
expenses.
OPINION
Petitioner has neither claimed nor shown that she satisfied
the requirements of section 7491(a) to shift the burden of proof
to respondent with regard to any factual issue. Accordingly,
petitioner bears the burden of proof. Rule 142(a). Deductions
are a matter of legislative grace; petitioner has the burden of
showing that she is entitled to any deduction claimed. Id.; New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
Petitioner relies on her own testimony to substantiate the
nursing business expenses. The Court is not required to accept
petitioner’s unsubstantiated testimony. See Wood v.
Commissioner, 338 F.2d 602, 605 (9th Cir. 1964), affg. 41 T.C.
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