- 6 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011