Judith E. Stephenson Fast - Page 7

                                        - 7 -                                         

          record, we find that the delegation fee also covered lodging and            
          travel within China.  Neither the meals, lodging, or travel                 
          expenses covered by the delegation fee have been separately                 
          accounted for, as required by section 1.274-5T(b)(2)(i),                    
          Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).              
          Thus, these amounts are not deductible.  While we also believe              
          that some portion of the delegation fee likely represented a fee            
          for attending the conference, there is no evidence in the record            
          from which we might discern that portion, as distinguished from             
          amounts subject to section 274(d)'s limitations.  Accordingly,              
          the entire fee is disallowed under section 274(d).                          
               Petitioner claimed a deduction for job-hunting expenses in             
          the amount of $2,372.96.  Respondent argues that the trips were             
          primarily personal in nature.  Petitioner took five trips during            
          the year in issue during which she interviewed for positions in             
          the health field.  On all the trips, she stayed with colleagues             
          or friends.  The first trip was to San Francisco.  She had a 1-             
          day interview and stayed in San Francisco from March 14 through             
          March 17.  The second trip was to Beckley, West Virginia.                   
          Petitioner had a 1-day interview and stayed in Beckley from                 
          July 1 to July 6.  Petitioner has family in West Virginia.  The             
          third trip was to Los Angeles, California.  Petitioner again had            
          a 1-day interview and stayed in Los Angeles from July 6 to July             
          11.  The fourth trip was to Los Angeles, beginning November 27.             





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011