- 4 -
Allowed by Disallowed by
Per Return Respondent Respondent
Car and truck expenses $17,877 $20,431 $(2,554)
Sec. 179 expense 10,000 -0- 10,000
Insurance 1,385 1,385 -0-
Interest 14 14 -0-
Office expense 230 230 -0-
Repairs & maint. 20,255 20,255 -0-
Taxes & licenses 275 275 -0-
Lodging 5,730 154 5,576
Meals (50%)* 2,255 1,984 271
Other expenses 3,749 3,749 -0-
Business use of home 343 -0- 343
Total expenses $62,113 $48,477 $13,636
*The meal amounts reflect the application of the 50%
limitation under sec. 274(n).
Respondent also determined petitioner was liable for the addition
to tax under section 6651(a)(1) for failure to file his return
timely.
Section 162(a) allows a deduction for the ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on a trade or business. Section 162(a)(2) expressly
permits the deduction of traveling expenses, including meals and
lodging, while away from home in the pursuit of a trade or
business. Expenses that do not meet these criteria are
considered personal expenses and are not deductible. See sec.
262(a).
A taxpayer is required to maintain records sufficient to
establish the amount of his or her income and deductions. See
sec. 6001; sec. 1.6001-1(a), Income Tax Regs. Under certain
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011