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Petitioners’ 1989 Forms 1040 and 1040X
Petitioners claimed a $51,363.965 deduction for unreimbursed
employee business expenses on Schedule A and Form 2106 (Employee
Business Expenses) attached to their 1989 Form 1040. The deduction
consisted of the following:
Vehicle expenses $15,987.84
Parking fees 39.00
Travel expense 7,597.64
Business expenses 23,230.95
Meals and entertainment 5,635.66
Less 20 percent of meals and
entertainment (1,127.13)
Total $51,363.966
In the notice of deficiency, respondent allowed $8,096 of the
claimed vehicle expenses and $39 for parking fees. Because Westech
reimbursed petitioner for some of these expenses, respondent
reduced the otherwise allowable deduction by $3,000. Respondent
disallowed the remainder of the claimed employee business expenses
for lack of substantiation.
Subsequent to filing their petition, petitioners filed an
amended return (Form 1040X) for 1989 and recharacterized their
5 Petitioners claimed miscellaneous expenses totaling
$53,490.34 on Schedule A attached to their 1989 Form 1040. This
amount was composed of $2,126.38 in claimed investment expenses
(which petitioners have conceded) and the $51,363.96 in employee
business expenses addressed below. After applying the 2 percent
of adjusted gross income limitation, petitioners’ deduction for
miscellaneous expenses totaled $50,783.03.
6 The parties stipulated that Westech reimbursed
petitioner for at least $4,266.41 of his 1989 business expenses.
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