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the burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Deductions
and credits are a matter of legislative grace, and the taxpayer
bears the burden of proving entitlement to any deduction or
credit claimed on a return. See INDOPCO, Inc. v. Commissioner,
503 U.S. 79 (1992); Wilson v. Commissioner, T.C. Memo. 2001-139.
We are not required to accept a taxpayer’s unsubstantiated
testimony that he is entitled to a deduction or credit. See
Tokarski v. Commissioner, 87 T.C. 74, 77 (1986); Hoang v.
Commissioner, T.C. Memo. 2006-47.
Pursuant to section 7491(a), the burden of proof as to
factual matters shifts to the Commissioner under certain
circumstances. Petitioners have neither alleged that section
7491(a) applies nor established their compliance with the
requirements of section 7491(a)(2)(A) and (B) to substantiate
items, maintain records, and cooperate fully with respondent’s
reasonable requests. Petitioners therefore bear the burden of
proof.
I. Mr. Buah--Docket No. 10640-05S
A. Medical and Dental Expenses
Under section 213(a), medical and dental expenses paid and
not compensated for by insurance or otherwise are deductible to
the extent they exceed 7.5 percent of adjusted gross income
(AGI).
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