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by petitioner total approximately $17,500. Petitioner contends
that he is entitled to deductions for these expenses because they
constitute business expenses paid by him during 1994.
To the extent that the disputed expenses are personal in
nature, they are not deductible pursuant to section 262. To the
extent that the disputed expenses are Tracstar's business
expenses, they are not deductible by petitioner because he has
failed to establish that his unreimbursed payment of Tracstar's
business expenses qualifies as an ordinary and necessary expense
of his own business under section 162(a). Deputy v. du Pont, 308
U.S. 488 (1940); Kaplan v. Commissioner, 21 T.C. 134, 146 (1953).
The litigation over the nature of the expenses will
ultimately determine who is liable for the disputed charges. If
any of the expenses are found to be business in nature,
petitioner is likely to be reimbursed by Tracstar to the extent
he paid for them with his bonus payments. We hold that
petitioner is not entitled to deductions for the disputed
expenses.
Motor Home Interest and Depreciation
In 1990, petitioners purchased a 1989 Southwind motor home.
On or about November 1, 1994, petitioners replaced the 1989
Southwind motor home with a 1994 Dynasty motor home. On their
1994 return, petitioners claimed deductions for interest and
depreciation for both of the motor homes. Petitioners did not
maintain a log of the business use of the motor homes. In their
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