- 6 -
1. Telephone Expenses, Rent, Taxes, and Unemployment
Insurance
Petitioner contends in his posttrial brief that he paid more
than respondent allowed for business expenses as follows: $600
for telephone expenses; $24,000 for rent; $950 for New York State
tax; $3,000 for Federal tax; and $500 for unemployment insurance.
Petitioner did not testify or offer any other evidence that he
paid these amounts, and so he failed to meet his burden of
proving he is entitled to deduct them.
2. Gas, Tolls, and Parking
Petitioner contends that he spent more than respondent
allowed as follows: $1,300 for gas, $1,250 for tolls, and $2,660
for business parking. We disagree.
A taxpayer may not deduct car and truck expenses unless he
or she substantiates by adequate records or sufficient evidence
corroborating the taxpayer’s own statement the amount, time and
place, and business purpose of the expense. Sec. 274(d)(4).
Petitioner calculated the $1,300 for gas expenses by
multiplying his estimate that he used his car 5,000 miles per
year for business by 26 cents per mile. He estimated that his
toll expenses were $5 per day. Respondent concedes that
petitioner spent $1,759 for parking expenses, and that $1,329 of
that amount was for business. Respondent included this $1,329 in
the $26,134 amount that respondent allowed for Elan expenses.
Petitioner testified generally about his parking expenses but
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011