- 11 - In order to substantiate a deduction by means of adequate records, a taxpayer must maintain a diary, a log, or a similar record, and documentary evidence that, in combination, are sufficient to establish each element of each expenditure or use. Sec. 1.274-5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). When a traveling taxpayer engages in both business and personal activities, expenses for transportation, meals, and lodging are deductible only if the trip is related primarily to the taxpayer's trade or business and not primarily personal in nature. Sec. 1.162-2(b)(1), Income Tax Regs. Whether a trip is related primarily to the taxpayer's trade or business or is personal in nature depends on the facts and circumstances in each case. Sec. 1.162-1(b)(2), Income Tax Regs. Where a taxpayer's spouse accompanies the taxpayer on a business trip, expenses attributable to the spouse's travel are not deductible unless it can be adequately shown that the spouse's presence on the trip has a bona fide business purpose. The spouse's performance of some incidental service does not cause the spouse's expenses to qualify as deductible business expenses. Sec. 1.162-2(c), Income Tax Regs. The manner in which petitioner attempted to market his book, that is, merely showing up at a retail bookstore without advance notice or an appointment, leads us to conclude that petitioners' claimed travel expenses were not incurred primarily in connectionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011