- 5 - First, as to the issue of State and local taxes paid, we are persuaded from our review of the entire record before us that the $8,000 in canceled checks submitted at trial was paid to the State of Illinois for personal taxes owed by petitioner and not for those owed by his business. We find petitioner’s testimony credible that these checks were for State and local income taxes personally owed to the State of Illinois. We are further convinced by the check registry submitted at trial that the checks at issue were, in fact, paid for personal State income taxes owed. We believe petitioner’s testimony that his law practice was not operating as a corporation during the year in issue and that these checks were not paid for any State or local taxes on its behalf. Finally, we note that the State and local tax deduction at issue was claimed only on petitioner’s Schedule A and not his Schedule C, Profit or Loss From Business, where taxes paid for his business would be deducted. Accordingly, we hold that petitioner is entitled to an itemized deduction in the amount of $8,000 for State and local taxes paid in 2001. With respect to petitioner’s deduction for tax preparation fees, at trial, petitioner explained that these expenses were primarily for legal services. Although petitioner did submit two letters from Mr. Moss listing the nature of the services provided to petitioner, it is unclear, both from the letters and from petitioner’s testimony what portion of these services wasPage: Previous 1 2 3 4 5 6 7 8 NextLast modified: November 10, 2007