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residence "shall be treated as a personal expense." Sec. 262(b).
Since petitioners had only one telephone line provided to their
home in 1994, they may not claim as a business expense their
basic monthly charge. The amount claimed by petitioners,
however, suggests the charges claimed as expenses for the
telephone were beyond the basic monthly charge. Petitioners must
show that they incurred any such expenses primarily for business
rather than social reasons. Rule 142(a); Walliser v.
Commissioner, 72 T.C. 433, 437 (1979).
To the extent that there was an amount for telephone calls
beyond the basic monthly charge, petitioners have not proven that
the charges were attributable to the business, and therefore they
may not claim them as expenses. See Irwin v. Commissioner, T.C.
Memo. 1996-490, affd. without published opinion 131 F.3d 146 (9th
Cir. 1997).
Car and Truck Expenses
Commuting Expenses
Respondent argues that petitioners are not entitled to claim
car and truck expenses for their Ford truck or their Lincoln
automobile because petitioner's transportation costs incurred
traveling between his home in Yuba City and Ro-Tile in Lodi are
commuting expenses. Even if they are not commuting expenses,
respondent disputes that petitioners have properly substantiated
them as business expenses.
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