Kenneth Andrew Baratelle - Page 16




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                                 Miscellaneous Cash                                   
          Date             Description                 Amount                         
                           Miscellaneous             300.00                           
                           Total                  $2,976.62                           
               1Petitioner’s claimed expenditure was $150.  Respondent                
          conceded $144.                                                              
               2Petitioner agrees that this amount was not for car rental             
          but was for a traffic fine.                                                 
               Petitioner is not entitled to deduct amounts spent to board            
          his dog.  See Estate of Beck v. Commissioner, 56 T.C. 297, 352              
          (1971) (expenses incurred to board taxpayer’s dogs are                      
          nondeductible personal expenses).  Likewise, the cost of renewing           
          petitioner’s passport is a nondeductible personal expense.  See             
          Wenz v. Commissioner, T.C. Memo. 1995-277 (passport renewal fees            
          classified as nondeductible personal expenses).  Traffic fines              
          and towing paid in connection with those fines also are                     
          nondeductible.  See sec. 162(f).                                            
               Respondent disallowed the balance of the contested items for           
          failure to substantiate either the payment or the business                  
          purpose of the payment.  We agree that the items in question are            
          subject to the strict substantiation requirements of section                
          274(d) and that petitioner has failed to satisfy them.                      
               Petitioner claimed airfare but presented no documentation              
          that he actually paid for the airfare.  While we do not doubt               
          that petitioner flew to the places he described, there is no                






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Last modified: May 25, 2011