- 3 - however, claims that he is entitled to offset such income with deductions for living expenses paid while he was working in Florida. Deductions are strictly a matter of legislative grace, and petitioners bear the burden of proving their entitlement to any deductions claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Hradesky v. Commissioner, 65 T.C. 87 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976) In general, deductions for personal living expenses are disallowed under section 262. Section 162(a)(2) allows deductions for traveling expenses if the expenses are: (1) ordinary and necessary; (2) incurred while away from home; and (3) incurred in pursuit of a trade or business. Bochner v. Commissioner, 67 T.C. 824, 827 (1977). The purpose behind the deduction for expenses paid while a taxpayer is away from home is to ease the burden on the taxpayer who incurs additional and duplicate living expenses. Rosenspan v. United States, 438 F.2d 905, 912 (2d Cir. 1971); Tucker v. Commissioner, 55 T.C. 783, 786 (1971). Petitioner testified that he paid $500 per month as rent for his living quarters, in addition to other living expenses such as food, laundry, and gasoline for his truck. Petitioner also testified that he paid $1,500 to repair the truck provided to him by Liberty Drywall Inc. Petitioner, however, failed to produce any receipts, documentary evidence, or witnesses at trial in support of his alleged expenses. It is well established that, inPage: Previous 1 2 3 4 Next
Last modified: May 25, 2011