James H. Shelton, Deceased, and Eve Shelton - Page 11

                                           - 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 connection                  




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011