- 7 - the claim of right rule and was required to make refunds in another year. However, section 1341 applies only if the amount of repayment exceeds $3,000 in the taxable year. Sec. 1341(a)(3). Moreover, we note that only a percentage of Social Security benefits is taxable under section 83, and petitioner has not demonstrated what percent, if any, of 1993 Social Security benefits was included or taxable on his prior year’s return. Therefore, petitioner is not entitled to a deduction for repayment of Social Security benefits. c. Employee Business Expenses Section 262(a) provides that no deduction shall be allowed for personal, living, or family expenses. Section 162(a)(2), however, permits a deduction for ordinary and necessary traveling expenses incurred while away from home in pursuit of a trade or business. To qualify for this deduction, the taxpayer must demonstrate that the expenses are (1) reasonable and necessary traveling expenses, (2) incurred while away from home, and (3) in the pursuit of business. Commissioner v. Flowers, 326 U.S. 465, 470 (1946). The purpose of the “away from home” provision is to mitigate the burden on the taxpayer, who, because of the exigencies of his trade or business must maintain two places of abode and thereby incur additional and duplicate living expenses. Tucker v. Commissioner, 55 T.C. 783, 786 (1971); Kroll v. Commissioner, 49 T.C. 557, 562 (1968).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011