T.C. Mem o. 2 01 5- 16 1

UNITED STAT ES TAX COURT

VALERY CHOUTO UO POUEMI AND SANDRINE ATE MEKENG, Peti ti on ers v. COM MIS SIONER OF INTERNAL REVENUE , Res po nd en t

Doc ke t No . 18 10 -1 3. Fi le d Au gu st17 , 20 15 . Vale ry Ch ou to uo Po ue m i an d S an dr in e Ate m ek en g, p ro ses e. Su sa n T. Mo sl ey

an d Larry

R. Po un de rs , Jr., fo r res po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION LAUBER, Ju dg e: The In te rn al Rev enue Serv ic e (IR S o r res po nd en t) d et erm in eda de fic ie nc y

inpe ti ti on ers ’ 20 09 Fed eral in co m e ta x o f $4 ,23 2. The d efi 1

All st atut ory

refe ren ces are t o the Int ern al Rev enue Co de (Co de ) ineffe ctat 1 al l re le va ntti m es , andall Ru le refe ren ces are t o the Tax C ourt Rul es of P ract ic e an d P ro cedur e. W e ro un d a ll m on et ary am ount s t o the ne ares t d ol lar.- 2 -

[* 2] ci en cy

is att rib ut ab le to th e d is al lo wan ce o f de du ct io ns for$3 0,0 62 of ex pe ns es rep orte d o n p et it io ne rs ’ Sch edul e C, Pro fitor Lo ss Fro m Bu si ne ss , for 20 09 . Thes e ex pe ns es were al le ge dl y in cu rredinpe ti ti on er h us band ’s bu si ne ss as a rea l es ta te sal es ag en t. The di sa ll owa nc e o f de du ct io ns forth e Sch edul e C ex pe ns es res ul te d i n c orres po nd in g a dju st m en ts to pe ti ti on ers ’ earn edin co m e cred itan d c hi ldtax cred it . On Au gu st20 , 20 13 , pet it io ne r wife reque st edrel ie f fro m joi ntan d s ev eral li ab il ity un de r se ct io n 6 01 5( c). The IRS g ran te d thi s re li ef i n fu ll on Nov em be r 7, 20 13 . The p art ie s h av e st ip ul at edth atpe ti ti on er wi fe i s en ti tl edto rel ie f fro m joi nt an d s ev eral li ab il ity

for20 09 an d tha t s he is no t en ti tl edto a refu ndfor20 09 . 2 The so le is su e rem ai ni ng forde ci si on is whet he r pe ti ti on er h us ba ndis en ti tl edto de du ct io ns forth e ex pe ns es rep orte d o n p et it io ne rs ’ Sch edul e C. W e co nc lu de th athe was n oten ga ge d i n apro fit -s eek in g “ tra de or b us in es s” du rin g 20 09 an d tha t h e fai le d t o s ub st an ti at e ex pe ns es un de rlyin g h is cla im edde du ct io ns in an y ev en t. We will th eref

or e su st ai n the de fic ie nc y as d et erm in edby res po nd en t. Sect io n 6 01 5( c) m ay

rel ie ve th e reque st in g s po us e o f li ab il ity forth e ta x a t 2 is su e, bu t i t d oe s n otpro vi de th e reque st in g s po us e wit h a ny ty pe of c red itor be ne fitth atwou ldres ul t i n a ny adjus tm en t t o the tax li ab il ity owedby the no nreque st in g s po us e.- 3 -

[* 3] FINDINGS OF FACT The pa rti es fil eda st ip ul at io n o f fact s wi th acco m pa nyin g e xh ib it s tha t i s in co rp or at edby thi s re fere nc e. At the ti m e th ei r pe ti ti on was fi le d, p et it io ne rs were d iv or cedan d re si de d i n s ep arat e lo cat io ns inMarylan d. Vale ry Ch ou to uo Po ue m i (p et it io ne r) was em pl oyed fu ll ti m e dur in g 2 00 7, 20 08 , and20 09 by V eri zo n a s a s erv ic e te ch ni ci an . This was an o ffi ce job th at requi redhi m

to pe rfo rm

co m pu te r an d n etwork m ai nt en an ce. He wo rk edbe twee n 32 an d 4 0 h ou rs a weekat t hi s jo b, an d h is an nu al sal ary av erag edab ou t $ 60 ,00 0. At s om e p oi ntdurin g 2 00 9 h e lo sthi s jo b a t Ver iz onan d b eg anrece iv in g un em pl oym en t co m

pe ns at io n fr om

th e St at e o f Mary land . His app li cat io n fo r un em pl oym en t co m

pe ns at io n s ta te d tha t h e was av ai labl e fo r fu ll -ti m e work. Pet it io ne r te st ifi edth athe typic al ly hel d two jo bs , to okco nt in ui ng educ ati oncla ss es , and“ di d re al est at e o n the si de .” He pr oduc eda Virg in iareal est at e li cen se with a n e xp ira ti on da te of M arch 31 , 20 09 , anda Mary landreal est at e li cen se with a n e xp ira ti on da te of Au gu st3, 2 00 9. He t es ti fie d tha t h e subs equ en tl y ren ewedbo th li cen se s. Bo thli cen se s s ta te th athe was a ffi li at edwith

“ Uni on Plu s R eal ty.” Pet it io ne r te st ifi edth athe work edon hi s re al est at e b us in es s o n wee ke nd s, du rin g the ev en in gs , anddu rin g “ do wn t im e” athi s d ay job . He all eg ed ly per-- 4 -

[* 4] fo rm edres earc h fo r po te nt ia l cl ie nt s, re vi ewedreal est at e li st in gs , anddro ve po te nt ia l cl ie nt s i n h is car t o v ie w pro pe rti es . He tes ti fie d tha t h e reg ul arl y sh owe d h ou se s an d apa rtments to po te nt ia l cl ie nt s an d e nt ert ai ne d the m . Pet it io ne r m ai nt ai ne d n o fo rm al led ge rs or b oo ks forhi s re al est at e b us in es s an d h adno bu si ne ss ba nkacco un t. He h adno real est at e li st in gs du rin g 2 00 9, the ta x year atis su e. He li ke wis e h adno real est at e li st in gs du rin g 2 00 8. Duri ng 3 20 07 he li st edon e p ro pe rty for s al e; itwas s ol d, n et ti ng hi m a co m m is si on of $9 ,45 7. Th atho us e was on Drum cas tl e Terra ce i n Germ an to wn, Ma ry land , on e bl oc k fr om

pe ti ti on er’s o wn re si de nc e. Tha t s in gl e co m

m is si on rep res en te d the on ly inc om e p et it io ne r de riv edfro m hi s re al est at e act iv ity

du rin g 2 00 7- 20 09 . For 2 00 7 h e rep orte d o n h is Sch edul e C in co m e o f $9 ,45 7, ex pe ns es of $ 33 ,90 7, an d alo ss of $ 24 ,45 0. Fo r 20 08 he rep orte d i nc om e o f zer o, ex pe ns es of $ 43 ,42 7, an d alo ss of $ 43 ,42 7. Fo r 20 09 he rep orte d i nc om e o f zer o, ex pe ns es of $ 30 ,06 2, an d alo ss of $ 30 ,06 2. Hi s re po rte d ex pe ns es for20 09 in cl ud edcar an d tru ckex pe ns es ($1 5,2 44 ), park in g a ndto ll s Gen eral ly, each tax y ear s tand s o n i ts ownan d m us t b e co ns id eredsep ar- 3 at el y . See Un it edSta te s v . Ske ll y Oil Co ., 39 4 U.S. 6 78 , 68 4 (1 96 9) . Howev er, i n cas es wher e a t ax pa y er’s p ro fitm ot iv e is at i ss ue , th e ci rcu m st an ces su rro un di ng a pa rti cu lar en de av ordu rin g years p rece di ng (an d s om et im es su ccee di ng ) are oft en rel ev an t t o the Co urt’s an al y si s. See , e.g., s ec. 1 .18 3- 2( b) (6 ) an d (7 ), In co m e Tax Reg s.- 5 -

[* 5] ($ 1,2 88 ), to ol s ($ 3,5 52 ), cel l p ho ne ($1 ,80 1) , tex t m es sa gi ng ($3 41 ), In te rn et acce ss ($7 48 ), wire le ss em ai l ($ 22 0) , com pu te r m ai nt en an ce ($ 42 0) , off ic e ex pe ns es ($6 30 ), st aff m eet in gs ($1 20 ), pa yro ll pro ces si ng ($1 20 ), bo tt le d wat er fo r cl ie nt s ($ 46 1) , “pe rs on al m ark et in g” ($8 50 ), an d 1 9 a dd it io na l ca te go rie s o f

“ ot he r ex pe ns es .” Pet it io ne r pr oduc edno co nv in ci ng subs tant iati on foran y of t he se ex pe ns es , an d m an y are s us pe cton th ei r fac e. He di d n otpro du ce a c on te m po ran eo us lo g o f hi s au to m ob il e ex pe ns es bu t o nl y a tabl e cre at eddu rin g the IRS au di t, s ho win g 28 ,43 3 m il es of a ll eg edbu si ne ss tra ve l. Ma ny entrie s o n thi s ch artare v ag ue , e.g.,

“ Seco ndJo b,” “ Yao Bi c li en t,” a nd“ Co ntEd cl as se s.” He h adno do cu m en ta ti on to est ab li sh whatpe rcen ta ge (if an y ) of hi s ce ll ph on e, co m

pu te r, In te rn et , tex t m es sa gi ng , or e m ai l ex pe ns es was b us in es s re late d. He o ffer edno pl au si bl e ex pl an at io n o f ho w hi s al le ge d re al est at e act iv ity requi redth e ex pe nd itur e o f $3 ,55 2 fo r “ to ol s.” He d idno t h av e a s ta ff, an d h e o ffer edno pl au si bl e ex pl an at io n o f hi s cl ai m edde du ct io ns forex pe ns es of “ st aff m eet in gs ” an d “pa y ro ll pro ces si ng .” Nordi d h e ex pl ai n wh atth e cl ai m edex pe ns e o f $8 50 for“pe rs on al m ark et in g” en ta il ed .- 6 -

[* 6] On Oct ob er 2 2, 2 01 2, the IRS s en t p et it io ne rs a no ti ce o f de fic ie nc y th at di sa ll owe d a ll of the de du ct io ns cla im edon th ei r Sch edul e C fo r 20 09 . Peti ti on ers ti m el y pe ti ti on edth is Co urt fo r red et erm in at io n. OPINION I. Bu rd enof P ro of The Co m m is si on er’s d et erm in at io ns ina no ti ce o f de fic ie nc y are g en eral ly pr es um edco rrec t, an d the tax pa y er b ears th e b ur de n o f pr ov in g tho se de te rm in ati on s erro ne ou s. Ru le 14 2( a); W el chv. Hel ve rin g, 2 90 U.S. 11 1, 1 15 (19 33 ). The ta xp ay er b ears th e b ur de n o f pr ov in g h is en ti tl em en t t o d educ ti on s al lo wedby the Co de an d o f subs tant iati ng th e am ou nt s o f cl ai m edde du ct io ns . INDOPCO, Inc . v. Co m m is si on er, 5 03 U.S. 79 , 84 (19 92 ); s ec. 1 .60 01 -1 (a), In co m e Tax Reg s. Pet iti on er d oe s n otco nt en d, an d the ev id en ce d oe s n otest ab li sh , th atth e b ur de n o f pr oo f sh ift s t o re sp on de ntun de r se ct io n 7 49 1( a) as to an y is su e o f fac t. II. Sch edul e C Deduc ti on s A. “ Trad e o r Bu si ne ss ” The fir stqu es ti on is whet he r pe ti ti on er’s rea l es tate act iv ity du rin g 2 00 9 am ount edto a “ tra de or b us in es s” en ga ge d i n fo r pr of it . Sect io n 1 62 (a) a ll ows as a d educ ti on “ al l the ord in ary an d n eces sa ry ex pe ns es pa idor i nc urreddu rin g the ta xabl e y ear i n c arrying onan y tra de or b us in es s.” To be en ti tl edto de du ct io ns- 7 -

[* 7] un de r th is sec ti on , th e ta xp ay er m us t s ho w th athi s ex pe ns es were i nc urredin anact iv ity

co nduc te d wi th co nt in ui ty, reg ul ari ty, an d the purp os e o f m ak in g a pr of it . Comm is si on er v . Groe tz in ge r, 48 0 U.S. 2 3, 3 5 (1 98 7) . The t ax pa y er m us t es tabl is h tha t h e “ en ga ge d i n the act iv ity with ‘th e p red om in an t, p rimary or pr in ci pa l o bjec ti ve ’ of

real iz in g an e co no m ic pro fitin de pe nd en t o f ta x s av in gs .” Gil es v. Co m

m is si on er, T.C. Mem o. 2 00 6- 15 , 91 T.C.M. (CCH) 6 84 , 68 8 (quo ti ng W ol f v. C omm is si on er, 4 F.3d70 9, 7 13 (9th C ir. 1 99 3) , aff’g T.C. Mem o. 1 99 1- 21 2) ; s ee Hu lt er v . Comm is si on er, 9 1 T.C. 3 71 , 39 2 (1 98 8) . In as se ss in g the ta xp ay er’s p ro fitm ot iv e, we acc or d g reat er wei gh t t o o bjec ti ve fact s tha n t o subjec ti ve st at em en ts of i nt en t. Kean in i v . Comm is si on er, 9 4 T.C. 4 1, 4 6 (1 99 0) ; se c. 1.1 83 -2 (a), In co m e Tax Reg s.; see Ind ep . Elec. Supp ly, In c. v. Co m m is si on er, 78 1 F .2d72 4, 7 26 (9t h C ir. 1 98 6) , aff’g Lah r v. C omm is si on er, T.C. Mem o. 1 98 4- 47 2. The reg ul at io ns setforth a no ne xc lu si ve li stof n in e fac to rs rel ev an t i n as cert ai ni ng whet he r a t axpa y er co nduc ts anact iv ity with the in te ntto earna pr of it . The fac to rs li st edare: (1) th e m an ne r inwhi chth e ta xp ay er co nduc ts th e act iv ity ; (2 ) th e ex pe rti se of t he tax pa y er o r hi s ad vi se rs ; (3 ) th e ti m e an d e ffo rt sp en t b y th e ta xp ay er i n c arrying on th e act iv ity ; (4 ) th e ex pe ct at io n tha t as se ts us edinth e act iv ity

m ay ap pr eci at e in va lu e; (5) th e su cces s o f th e ta xp ay er i n c ar-- 8 -

[* 8] ry in g o n o th er s im il ar o r di ss im il ar ac ti vi ti es ; (6 ) th e ta xp ay er’s h is to ry of in co m e o r lo ss with re sp ectto th e act iv ity ; (7 ) th e am ou ntof o ccas io na l p ro fit s, i f an y ; (8 ) th e fi na nc ia l s ta tu s o f th e ta xp ay er; an d (9 ) el em en ts of p ers on al pl eas ur e orrecr eat io n. Se c. 1.1 83 -2 (b ), In co m e Tax Reg s. No fa ct oror g ro up of f

act or s i s co nt ro ll in g, n oris itne ces sary th ata m ajor ity of f act or s p oi ntto on e o ut co m e. See Kea ti ng v. Co m m is si on er, 5 44 F.3d90 0, 90 4 (8 thCir . 20 08 ), aff’g T.C. Me m o. 2 00 7- 30 9; Eng da hl v. Co m m is si on er, 7 2 T.C. 65 9, 6 66 (19 79 ); s ec. 1 .18 3- 2( b) , Inc om e Tax Reg s. Ce rta in fact or s m ay be acco rd edm or e wei gh t i n apa rti cu lar cas e b ecau se th ey ha ve gre at er s al ie nc e o r pe rs ua si ve va lu e as ap pl ie d t o i ts fact s. See Vit al e v . Comm is si on er, T.C. Mem o. 19 99 -1 31 , 77 T.C.M. (CCH) 1 86 9, 1 84 7, af f’d witho utpubl is he d o pi ni on , 21 7 F.3 d 8 43 (4t h C ir. 2 00 0) ; Gre env. Co m m is si on er, T.C. Mem o. 1 98 9- 43 6, 5 7 T.C.M. (CC H) 13 33 , 13 43 (no ti ng th atall ni ne fact or s d o n otne ces sa ril y ap pl y in ev ery cas e). W e reg ardsev eral of t he reg ul at ory fact or s as ne utral inth is cas e, an d n on e weig hs m ean in gf

ul ly in p et it io ne r’s fav or . For t he fol lo win g re as on s, we co nc lu de th atpe ti ti on er d idno t en ga ge inhi s re al est at e act iv ity du rin g 2 00 9 wi th th e pr im ary an d g enui ne purp os e o f m ak in g apro fit .- 9 -

[* 9] (1 ) Pet it io ne r di d n otco nduc t thi s ac ti vi ty in a b us in es sl ik e m an ne r. He ke ptno bu si ne ss bo ok s o r rec or ds an d h adno bu si ne ss bankacco un t. He h adno bu si ne ss pl anan d m ad e n o c ha ng es to hi s m odus op eran di inaneffo rt t o g en erat e co m m is si on s. He o ffer edno co nt em po ran eo us ev id en ce o f hi s b us in es s en ga ge m en ts . His c ha rt s ho win g 2 8,4 33 m il es of b us in es s trav el du rin g 2 00 9 i s co m pl et el y im pl au si bl e as are m an y

of t he bu si ne ss ex pe ns es th athe rep orte d. Hi s te st im on y on all th es e p oi nt s was va gu e an d u np ers ua si ve . See Bra db ury v. Co m m is si on er, T.C. Mem o. 1 99 6- 18 2, 7 1 T.C.M . (CCH) 2 77 5, 2 77 7- 27 78 (no ti ng th attax pa y er fa il edto supp ly relev an t ev id en ce o f bu si ne ss act iv ity or p ro of of bu si ne ss ba nkacco un ts ); s ec. 1 .18 3- 2( b) (1 ), In co m e Tax Reg s. (2 ) Pet it io ne r pr oduc edno co nv in ci ng ev id en ce tha t h e d ev el op edex pe rti se in , or d ev ot edm ean in gf

ul ti m e o r effo rt t o, h is real est at e act iv ity . He work edon e ortwo reg ul ar job s an d t es ti fie d tha t h e “ di d re al est at e o n the si de .” He se cu red on ly one real est at e li st in g b etween20 07 an d 2 00 9; th atwas fo r a n ei gh bo r an d pr es um ab ly requ ire d l it tl e eff ort. He p ro du cedno ev id en ce o f in vo lv em en t i n a ny ot he r rea l es ta te trans act io ns du rin g the se th ree years. Al th ou gh he tes ti fie d tha t he to okco nt in ui ng educ at io n c la ss es , he d em on st rat edno ser io us effo rt t o a dv an ce hi s ca reeras areal est at e p ro fes si on al . His t es ti m on y th athe de vo te d 3 0 h ou rs pe r weekto hi s re al est at e act iv ity was n otcred ib le . See Tay lo r v. C omm is si on er,- 10 -

[* 10 ] T.C. Mem o. 1 99 8- 35 1, 7 6 T.C.M . (CCH) 5 88 , 59 1 (f in di ng th attax pay er d id no t u se hi s ex pe rti se inth e en de av orat i ss ue ev enth ou gh he was ali cen se d re al es ta te sal es ag en t); Bradbu ry , 71 T.C.M. (CCH) a t 2 77 8 (n ot in g l ackof c red ib le ev id en ce tha t t ax pa y er d ev ot edco ns is te ntti m e an d e ffo rt t o b ro ke rag e act iv ity ); se c. 1.1 83 -2 (b )(2 ) an d (3 ), In co m e Tax Reg s. (3 ) Pet it io ne r ha s n ev er ea rn eda pr of itfro m hi s re al est at e act iv ity . See Gol an ty v. Comm is si on er, 7 2 T.C. 4 11 , 42 7 (1 97 9) (no ti ng th ata se rie s o f subs tant ia l l os se s s ug ge st s the lac k o f a p ro fitm ot iv e), aff ’d witho utpubl is he d op in io n, 6 47 F.2d17 0 (9 th Cir . 19 81 ); s ec. 1 .18 3- 2( b) (6 ), In co m e Tax Reg s. Pet it io ne r earne d o ne real est at e co m mis si on in20 07 an d e arn edno in co m e fro m hi s re al est at e act iv ity

in20 08 or 2 00 9. Th e ex pe ns es he rep orte d dur in g the se th ree years, t ot al in g $ 10 7,3 96 , are v as tl y ou t o f pr op orti on to th e in co m e h e earn ed . The $ 30 ,06 2 l os s h e rep orte d fo r 20 09 was n otin cu rred“ du rin g the in it ia l orst art -up s ta ge ” o f hi s s up po se d b us in es s. Cf. s ec. 1 .18 3- 2( b) (6 ), In co m e Tax Reg s. An d re si de nt ia l re al est at e is no t a “ hi gh ly spe cu la ti ve ve ntur e” wh ere lo ss es canbe jus ti fie d b y anex pe ct at io n o f la rg e p ro fit s. Cf. i d. s ub pa ra. (7 ). Pet it io ne r’s rep orte d l os se s wer e co nt in uo us an d s ub st an ti al fora pe rs on inhi s eco no m ic po si ti on . This stro ng ly sug ge st s tha t h e d idno t en ga ge inth is act iv ity to m ak e a p ro fit .- 11 -

[* 11 ] (4 ) Pet it io ne r ha d aful l-t im e job with Ver iz ondu rin g 2 00 7, 2 00 8, an d m os t of 20 09 . His a nn ua l s al ary av erag edab ou t $ 60 ,00 0. Yetby repo rti ng lo ss es fro m hi s re al est at e act iv ity

of $ 24 ,45 0, $ 43 ,42 7, an d $ 30 ,06 2, re sp ect iv el y , he at te m pt edto reduc e h is reg ul ar i nc om e ta x l iabi li ty for eac h year to zero . Thi s 4 st rat eg y en ab le d h im

to rep ort o ve rp aym en ts of $ 11 ,10 8, $ 13 ,20 5, an d $ 8,7 10 , res pe ct iv el y , andcla im

refu nd s o f vi rtu al ly all the in co m e ta x wi th he ldfro m hi s wag es . Alth ou gh pe ti ti on er’s s al ary was fai rly m od es t, “ th e lo ss es fro m * * * [h is real est at e] acti vi ty gen erat e[d ] subs tant ia l t ax be ne fit s.” Id . subp ara. (8 ). W e fi nd th atpe ti ti on er en ga ge d i n h is real est at e act iv ity no t t o e arnaneco no m ic pro fitbu t as a ve hi cl e fo r of

fs et ti ng ag ai ns t h is sal ary in co m e n on de du ct ib le “pe rs on al , li vi ng , or fa m il y

ex pe ns es .” See s ec. 2 62 (a). Ove ral l, we fi ndan d h ol d tha t p et it io ne r di d n otin cu r th e ex pe ns es rep orte d on hi s Sc he du le C in anact iv ity co nduc te d wi thco nt inui ty, reg ul ari ty, orforth e pu rp os e o f m ak in g apro fit . Und er s ect io n 1 83 (a) and(b) , th eref or e, th e d educ ti on s at tri bu tabl e to hi s re al est at e act iv ity are l im it edto th e g ro ss in co m e h e

Pet it io ne rs ’ cl ai m edrefundfor20 09 was re du cedby an “ ad di ti on al tax ” o f 4 $1 ,98 4 o n e arl y

withd rawal fro m

a ret ire m en t p lan. Se e se c. 72 (t) .- 12 -

[* 12 ] de riv edth eref

ro m . Becau se he de riv edno gro ss in co m e fro m th atact iv ity

in 20 09 , he i s en ti tl edto no de du ct io ns . 5 B. Subs tant ia ti on of Ex pe ns es Eve n i f pe ti ti on er were fou ndto ha ve en ga ge d i n a“ tra de or b us in es s” for pr of itdu rin g 2 00 9, we wo ul d fi ndth athe fai le d t o s ub st an ti at e th e ex pe ns es un de rlyin g h is cla im edde du ct io ns . The b ur de n o f subs tant ia ti ng ex pe ns es res ts on th e ta xp ay er. Sec . 60 01 ; Ru le 14 2( a); Hrad es ky v. Co m m is si on er, 6 5 T.C. 8 7, 8 9 (1 97 5) , aff’d p er cu ria m , 54 0 F .2d82 1 (5 th Cir . 19 76 ). Cert ai n o f pe ti ti on er’s al le ge d e xp en se s, i nc lu di ng hi s au to m ob il e an d trav el -rel at edex pe ns es for20 09 , to ta li ng $1 6,5 32 , are s ub

ject t o the stric t s ub st an ti at io n re qu ire m en ts of s ect io n 27 4( d) . See San fo rdv. Co m m is si on er, 5 0 T.C. 8 23 , 82 7 (1 96 8) , aff’d, 4 12 F.2d 20 1 (2 d C ir. 1 96 9) ; Ly sf

or d v . Commis si on er, T.C. Mem o. 2 01 2- 41 ; s ec. 1 .27 4- 5T(a ), Tem

po rary Inco m e Tax Reg s., 5 0 F ed . Reg . 46 01 4 (No v. 6 , 19 85 ). Pet it io ne r who ll y

fai le d t o m eetth os e requi rem en ts . As fo r hi s o th er al le ge d ex pe ns es , m an y

were co m

pl et el y im pl au si bl e o n the ir f

ace, andhe pro du cedno in vo ic es , ban k s ta te m en ts , cred itcardst at em en ts , or o th er cr ed ib le do cu m en ta ti on to subs tant ia te any

of t he m . W e acc or di ng ly findth athe wou ldno t b e en ti tl edto Non e o f pe ti ti on er’s al le ge d e xp en se s ap pe ar t o b e o th erwi se all owabl e as 5 it em iz edde du ct io ns .- 13 -

[* 13 ] th e cl ai m edde du ct io ns ev enif h e h aden ga ge d i n apro fit -s eek in g re al est at e bu si ne ss du rin g 2 00 9, wh ic h h e d idno t d o. To re fle ctth e fo reg oi ng , An ap pr op ria te de ci si on wil l b e en te red .