- 21 - expense was incurred; and (3) the business purpose for which such expense was incurred. At trial, the only evidence petitioners presented was a copy of Mrs. Rezazadeh's round-trip airline ticket to Bogota. The ticket indicated the dates and destination of travel and the $901.28 cost of the round-trip flight. Petitioners have properly substantiated their entitlement to a travel expense deduction for the amount of the flight. With respect to the other expenses claimed, petitioners have not satisfied the strict substantiation requirements of section 274(d) and, therefore, are not entitled to deduct the remaining travel expenses claimed.5 With respect to the third issue, petitioner has authored and published several books, conducting this activity in a portion of 5 Sec. 274(c)(1) provides generally that, in the case of an individual who travels outside the United States away from home in pursuit of a trade or business or an activity under sec. 212, no deduction shall be allowed under sec. 162 or sec. 212 for that portion of the expenses of such travel otherwise allowable under such sections that, under regulations prescribed by the Secretary, is not allocable to such trade or business or to such activity. Sec. 274(c)(2) provides certain exceptions to the applicability of sec. 274(c)(1), one of which is where the portion of the time of travel outside the United States away from home that is not attributable to the taxpayer's trade or business or a sec. 212 activity is less than 25 percent of the total time on such travel. In this case, the travel time spent by Mrs. Rezazadeh on activities not attributable to petitioner's trade or business was considerably less than 25 percent of her total travel time. Moreover, the record does not show that any of the expenses incurred by Mrs. Rezazadeh not attributable to petitioner's trade or business would have otherwise been allowable under sec. 162. Consequently, the provisions of sec. 274(c)(1) are not applicable to this issue.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011