Steve D. Putnam - Page 9

                                        - 9 -                                         

          Terminal Elevator Co. v. Commissioner, 6 T.C. 1158, 1165 (1946),            
          affd. 162 F.2d 513 (10th Cir. 1947).  We have only petitioner’s             
          self-serving testimony, which is contradicted by the testimony              
          and evidence provided by Ms. Nero.  Petitioner also had at least            
          eight evening meals and seven weekend meals reimbursed by TI                
          during 1993, which undermines his statements that evening and               
          weekend meals were not reimbursable.                                        
               Petitioner argues that by entertaining the customers he                
          increased his sales, which benefited TI.  Nevertheless, the                 
          deductions for valid business expenses properly belong to TI, not           
          petitioner.  Kennelly v. Commissioner, supra.                               
               Generally, the cost of a daily newspaper of general                    
          circulation is a nondeductible personal expense.  Sec. 262;                 
          Wallendal v. Commissioner, 31 T.C. 1249, 1252 (1959).  Petitioner           
          contends that he subscribed to the newspaper to read the business           
          page in order to check on new and existing companies.  Petitioner           
          did not demonstrate that he subscribed to the newspaper solely or           
          principally for business purposes.  Wallendal v. Commissioner,              
          supra.  A general circulation newspaper clearly contains a                  
          significant amount of information which is inherently of a                  
          personal interest.  Pollak v. Commissioner, T.C. Memo. 1984-597.            
               In sum, we find that petitioner is not entitled to deduct              
          the unreimbursed employee expenses or the miscellaneous expenses            
          claimed on Schedule A.                                                      





Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011