- 13 - B. Taxes Paid Petitioner claimed a deduction for State and local taxes paid of $4,097.60. In his pretrial memorandum, respondent conceded that, if petitioner’s allowable itemized deductions are greater than the standard deduction, petitioner is entitled to a deduction for the taxes paid. C. Charitable Contributions Section 170(a)(1) generally authorizes a taxpayer to claim a deduction for any charitable contribution made during the taxable year. On Schedule A to his 2001 return, petitioner claimed a charitable contribution deduction for cash gifts to a church ($690) and for noncash gifts ($820). The only documentation produced by petitioner was a receipt, purportedly from the Salvation Army, regarding the noncash contribution. At trial respondent convincingly proved that the documentation had been falsified. Consequently, the record contains no credible evidence substantiating petitioner’s charitable contributions for 2001, and we sustain respondent’s determination. D. Unreimbursed Employee Business Expenses and Other Miscellaneous Expense Section 162(a) authorizes a taxpayer to deduct ordinary and necessary business expenses paid or incurred during the taxable year in carrying on a trade or business. An “ordinary” expense is one incurred in a transaction that commonly or frequently occurs in the type of business involved. Deputy v. du Pont, 308Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011