- 16 -
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
10
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
(continued...)
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