Thomas M. and Dolores F. Gomez - Page 6

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          Issue 1.  Unreimbursed Employee Business Expense Deduction                   
               In order to deduct unreimbursed employee business expenses,             
          a taxpayer must satisfy the requirements of section 162, and,                
          with respect to certain expenses, section 274.                               
               Section 162(a) authorizes a deduction for all ordinary and              
          necessary expenses paid or incurred during a taxable year in                 
          carrying on a trade or business.  An "ordinary" expense is one               
          that relates to a transaction "of common or frequent occurrence              
          in the type of business involved", Deputy v. du Pont, 308 U.S.               
          488, 495 (1940), and a "necessary" expense is one that is                    
          "appropriate and helpful" for "the development of the                        
          petitioner's business", Welch v. Helvering, supra at 113.  A                 
          "trade or business" includes the trade or business of being an               
          employee.  O'Malley v. Commissioner, 91 T.C. 352, 363-364 (1988);            
          Primuth v. Commissioner, 54 T.C. 374, 377-378 (1970).                        
               In this case, petitioner satisfied the trade or business                
          requirement of section 162 because he was in the trade or                    
          business of being an employee.  However, he failed to convince us            
          that he had incurred ordinary and necessary employee business                
          expenses in excess of those reimbursed to him by his employers.              
               Each of petitioner's employers in 1993 had a policy of                  
          reimbursing its employees for ordinary and necessary business                
          expenses.  Pursuant to those policies, petitioner received $1,800            
          in automobile allowance and $25,173 ($2,129 from IHS and $23,044             
          from HRIG) in 1993 expense reimbursements.  Although petitioner              
          introduced documentation of alleged business expenses at trial               

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