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Helvering, 290 U.S. 111, 113 (1933); Carbine v. Commissioner, 83
T.C. 356, 363 (1984), affd. 777 F.2d 662 (11th Cir. 1985). To be
“ordinary”, the transaction giving rise to the expense must be of
common or frequent occurrence in the type of business involved.
Deputy v. Dupont, 308 U.S. 488, 495 (1940). Even if it is
determined that the expenses are ordinary and necessary, they are
deductible under section 162 only to the extent that they are
reasonable in amount. United States v. Haskel Engg. & Supply
Co., 380 F.2d 786, 788-789 (9th Cir. 1967); Gill v. Commissioner,
T.C. Memo. 1994-92, affd. without published opinion 76 F.3d 378
(6th Cir. 1996).
Respondent asserts that the expenses of petitioner’s
equestrian activities are unreasonable and are not ordinary and
necessary because they represent personal expenditures of
petitioner. See sec. 262(a). Respondent relies on Henry v.
Commissioner, 36 T.C. 879 (1961), to support his argument. In
that case, the taxpayer, a C.P.A., sought to deduct the expenses
for his boat, upon which he flew a flag bearing the numerals
“1040”. He asserted that the flag provoked inquiries to which he
would reply that he was a C.P.A. and a lawyer experienced in tax
law. In disallowing the expenses of the boat, the Court held
that the taxpayer failed to prove that the flag made his yacht
expenditures “necessary” to his practice. He failed to show
exactly how and under what circumstances his boating activities
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