- 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 its
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011