Conrad Fitzgerald Lewis - Page 14

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          Accordingly, DD is not considered a “qualifying child” within the           
          meaning of section 24(c).  It follows, therefore, that petitioner           
          is not entitled to a child tax credit under section 24(a) with              
          respect to DD.                                                              
          3.  Schedule C Expenses                                                     
               A taxpayer generally may not deduct personal, living, and              
          family expenses.  Sec. 262(a).  However, section 162(a) allows a            
          taxpayer to deduct all ordinary and necessary business expenses             
          paid or incurred during the taxable year in carrying on any trade           
          or business.  To be “necessary” an expense must be “appropriate             
          and helpful” to the taxpayer’s business.  Welch v. Helvering, 290           
          U.S. at 113-114.  To be “ordinary” the transaction which gives              
          rise to the expense must be of a common or frequent occurrence in           
          the type of business involved.  Deputy v. Du Pont, 308 U.S. 488,            
          495 (1940).                                                                 
               Section 6001 and the regulations promulgated thereunder                
          require taxpayers to maintain records sufficient to permit                  
          verification of income and expenses.  As a general rule, if the             
          trial record provides sufficient evidence that the taxpayer has             
          incurred a deductible expense, but the taxpayer is unable to                
          adequately substantiate the precise amount of the deduction to              
          which he or she is otherwise entitled, the Court may estimate the           
          amount of the deductible expense, bearing heavily against the               
          taxpayer whose inexactitude in substantiating the amount of the             

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