- 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 butPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011