- 18 - Meals and Entertainment Expenses On his 1994 Schedule C, petitioner claimed a deduction for meals and entertainment in the amount of $2,435, calculated as follows: Meals and entertainment $4,871 Less: 50% limitation of sec. 274 (2,436) Total deduction $2,435 Petitioner now contends that he is entitled to a deduction for meals and entertainment of $1,770, calculated as follows: Meals and entertainment $3,539 Less: 50% limitation of sec. 274 (1,769) Total revised deduction $1,770 Of the revised meals and entertainment expenses claimed by petitioner, respondent conceded that petitioner has substantiated meals and entertainment expenses of $1,933.62 before the 50- percent limitation of section 274(n) is applied. Respondent maintains that he has allowed a deduction for “substantially all of the items for which petitioner has presented documentary evidence, except for the cost of golfing.” We have reviewed the record, and we agree petitioner failed to substantiate the remainder of the items claimed. The remaining items fell into two categories–-meals for which petitioner presented no documentation ($1,328.89) and golf expenses as to which petitioner failed to substantiate all of the elements required by section 274(d) ($323.60). Section 274(d) requires adequate documentation of a covered expense and itsPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011