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Cost Recovery System (MACRS), which was introduced into law by
the Tax Reform Act of 1986, Pub. L. 99-514, sec. 201(a), 100
Stat. 2085, 2121-2137. A depreciation deduction for tangible
property is calculated by using the applicable depreciation
method, recovery period, and convention. Sec. 168(a).
No deduction is allowed for personal, living, or family
expenses. Sec. 262. In evaluating whether certain expenses are
personal or business in nature, the courts have found that some
expenses are so “inherently personal” that they are almost
invariably held to come within the ambit of section 262. Fred W.
Amend Co. v. Commissioner, 55 T.C. 320, 325-326 (1970), affd. 454
F.2d 399 (7th Cir. 1971). It is well settled that clothing that
is suitable for general or personal wear does not qualify as a
business expense under section 162. E.g., Green v. Commissioner,
T.C. Memo. 1989-599. Such costs are not deductible even when it
has been shown that the particular clothes would not have been
purchased but for the employment. Stiner v. United States, 524
F.2d 640 (10th Cir. 1975); Donnelly v. Commissioner, 262 F.2d 411
(2d Cir. 1959), affg. 28 T.C. 1278 (1957).
With the exception of a $200 deduction for stage clothes,
see infra pp. 12-13, petitioner is not entitled to deductions for
any of his claimed expenses in excess of what respondent has
allowed. For the automobile, office supplies, research, and
travel expenses, petitioner did not submit documentary or
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Last modified: May 25, 2011