- 5 -
to off-site parking charges (i.e., charges incurred to attend
meetings or visit customers away from the downtown office) or
whether such charges included parking at the downtown office.
Petitioner was unaware that she possibly could be reimbursed for
parking at the downtown office. Petitioner claimed a Schedule A
deduction for parking of $1,254.
Section 162(a) allows a deduction for all ordinary and
necessary expenses incurred in carrying on a trade or business.
The performance of services as an employee constitutes a trade or
business. O'Malley v. Commissioner, 91 T.C. 352, 363-364 (1988).
An ordinary expense is one that is common and acceptable in the
particular business. Welch v. Helvering, supra at 113-114. A
necessary expense is an expense that is appropriate and helpful
in carrying on the trade or business. Heineman v. Commissioner,
82 T.C. 538, 543 (1984).
When an employee has a right to reimbursement for
expenditures related to her status as an employee, but fails to
claim such reimbursement, the employee's expenses are not
deductible because the employee's expenditures are not
"necessary"; i.e., it is not necessary for an employee to remain
unreimbursed for expenses to the extent he or she could have been
reimbursed. Orvis v. Commissioner, 788 F.2d 1406 (9th Cir.
1986), affg. a Memorandum Opinion of this Court; Lucas v.
Commissioner, 79 T.C. 1, 7 (1982); Kennelly v. Commissioner, 56
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011