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charitable contributions of property other than the $89
respondent allowed.
Unreimbursed Employee Business Expenses
We next consider the unreimbursed employee business expenses
petitioners claimed on Schedule A. We begin by outlining the
general rules to claim business expenses. In general, all
ordinary and necessary expenses paid or incurred in carrying on a
trade or business during the taxable year are deductible. Sec.
162(a). Services performed by an employee constitute a trade or
business. O’Malley v. Commissioner, 91 T.C. 352, 363-364 (1988);
sec. 1.162-17(a), Income Tax Regs. An expense is ordinary for
these purposes if it is normal or customary within a particular
trade, business, or industry. Deputy v. du Pont, 308 U.S. at
495. An expense is necessary if it is appropriate or helpful for
the development of the business. Commissioner v. Heininger, 320
U.S. 467, 471 (1943). Personal, living, or family expenses, on
the other hand, are not generally deductible. Sec. 262.
If a taxpayer establishes that he or she paid or incurred a
deductible business expense but does not establish the amount of
the deduction, we may approximate the amount of the allowable
deduction, bearing heavily against the taxpayer whose
inexactitude is of his or her own making. Cohan v. Commissioner,
39 F.2d 540, 543-544 (2d Cir. 1930). For the Cohan rule to
apply, however, a basis must exist on which this Court can make
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