Joseph Baldwin Campbell - Page 16

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            1168, 1171-1174 (7th Cir. 1984), affg. 80 T.C. 783, 787-788                                  
            (1983).  Petitioner's seemingly unfortunate circumstance does not                            
            affect his Federal income tax liability with regard to the                                   
            $43,380 per capita distribution.  Petitioner's recourse, if any,                             
            lies in his dispute with the tribal council, which has been                                  
            scheduled for legal arbitration.                                                             
                  On this record, the Court holds that the $43,380 per capita                            
            distribution received by petitioner in 1992 was not received in                              
            lieu of farming income.  The Court holds further that such                                   
            distribution is subject to Federal income tax under the                                      
            provisions of the Indian Gaming Regulatory Act and that such                                 
            income was not "derived directly" from the trust land.                                       
            Respondent, therefore, is sustained on this issue.                                           
                  The second issue is whether unreimbursed expenses incurred                             
            by petitioner in the course of his duties as a member of the                                 
            Environmental Protection Committee (EPC) of the tribal council                               
            are deductible in 1992.  Expenses incurred by an employee that                               
            are not reimbursed by the employer are generally deductible under                            
            section 162(a), which allows a deduction for all ordinary and                                
            necessary expenses paid or incurred during the taxable year in                               
            carrying on a trade or business.10  Primuth v. Commissioner, 54                              

                  For tax years beginning on or after Jan. 1, 1987, as in this                           
            case, miscellaneous itemized deductions, including unreimbursed                              
            employee expenses, are deductible, under sec. 67(a), only to the                             
            extent that the aggregate miscellaneous itemized deductions                                  

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