- 5 - unreimbursed employee expenses for the 1994 tax year on Form 2106 in the following amounts: Expenses Amount Vehicle expenses $4,048 Meal and entertainment expenses 6,422 Travel and lodging expenses 5,680 Total 16,150 Respondent determined that petitioners were not entitled to deduct unreimbursed employee expenses in the amount of $15,123 as traveling expenses incurred while away from home because petitioner's employment with Motorola was for an indefinite term, and, therefore, respondent disallowed the amount. Petitioners contend that petitioner's home was in Arlington, Texas, and that petitioner incurred deductible unreimbursed employee expenses while petitioner was temporarily working for Motorola in Seguin, Texas. Discussion 1. Unreimbursed Employee Expense Deductions Deductions are a matter of legislative grace. New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Taxpayers bear the burden of proving that they are entitled to the deductions they claim. Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 162(a) allows a taxpayer to deduct all ordinary and necessary business expenses paid or incurred during the taxable year in carrying on any trade or business. No deduction is allowed for personal, living, or family expenses. Sec. 262.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011