Terry U. Neal - Page 13




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               On this record, the Court holds that petitioner is not                 
          entitled to dependency exemptions for Adam, Amanda, and Nathan              
          for 1994, 1995, or 1996.  Consequently, respondent is sustained             
          on this issue.                                                              
          The second issue is whether petitioner is entitled to                       
          itemized deductions for 1994 in excess of that allowed by                   
          respondent.  On Schedule A, Itemized Deductions, of his 1994                
          return, petitioner claimed miscellaneous itemized deductions                
          subject to the 2-percent-of-adjusted-gross-income limitation of             
          section 67(a) for job hunting expenses totaling $4,600.  These              
          expenses consisted of $3,269 for mileage expenses (11,271 miles             
          at 29 cents per mile), telephone expenses of $1,152 (long                   
          distance and cellular), vocational materials of $98, postage of             
          $52, and printing of $29.  Respondent disallowed a portion of               
          these expenses, including $358 for mileage expenses, $384 for               
          telephone expenses, $40 for vocational material expenses, and $52           
          for postage expenses.4                                                      
               Petitioner presented no documentary evidence to show he                
          actually incurred any of the aforementioned expenses disallowed             
          by respondent.  It is well established that this Court is not               


          4                                                                           
               At trial, respondent conceded that, although the notice of             
          deficiency disallowed $876 in itemized deductions, this was due             
          to a mathematical error, and the correct amount of disallowed               
          itemized expenses should have been $834.  Thus, respondent                  
          conceded that petitioner was entitled to an additional $42 of               
          miscellaneous itemized deductions.                                          




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