- 6 - Moreover, deductions are a matter of legislative grace and are allowed only as specifically provided by statute. INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). With these well-established principles in mind, the Court must determine whether petitioner satisfied his burden of proving that he is entitled to the itemized deductions at issue. As previously stated, on his Schedule A for 2002, petitioner deducted $18,8194 of unreimbursed employee expenses for the following: Amount Uniforms and dry cleaning $8,860 Equipment 4,980 Tuition 2,960 Subscriptions 1,987 Union dues 860 Section 162 allows a deduction for ordinary and necessary business expenses paid or incurred during the taxable year in carrying on any trade or business. Sec. 162(a); Deputy v. du Pont, 308 U.S. 488, 495 (1940). A trade or business includes the trade or business of being an employee. O’Malley v. Commissioner, 91 T.C. 352, 363-364 (1988). The taxpayer bears the burden of substantiation. Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). 4The amount claimed before the 2-percent floor imposed by sec. 67(a) was $19,647.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011