Marin I. and Anita J. Johnson - Page 11




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          prove that he actually incurred the claimed expenses; respondent            
          asserts that petitioner’s testimony standing alone is                       
          insufficient proof for this purpose.  Respondent asserts thirdly            
          that petitioner may not use the subject revenue procedures to               
          ascertain the amounts of his deductions because, respondent                 
          asserts, those revenue procedures do not apply when only                    
          incidental expenses are incurred.                                           
               We agree with petitioner that he is entitled to the claimed            
          deductions but disagree with him as to the amounts of those                 
          deductions.  We hold that petitioner’s deductions are limited to            
          the incidental expense portions of the applicable M&IE rates.  We           
          begin our analysis with the relevant statutory provisions.  An              
          individual may deduct all ordinary and necessary expenses paid or           
          incurred during the taxable year in carrying on a trade or                  
          business.  See sec. 162(a).  Services performed by an employee              
          constitute a trade or business for this purpose, see O'Malley v.            
          Commissioner, 91 T.C. 352, 363-364 (1988), and ordinary and                 
          necessary expenses generally include amounts which an employee              
          pays while traveling away from home in connection with his or her           
          employment, see sec. 162(a)(2).  Section 162 does not, however,             
          allow a taxpayer to deduct travel expenses attributable to                  
          personal, living, or family expenses.  See sec. 262.  Nor does              
          section 162 allow a taxpayer to deduct travel expenses absent               
          either compliance with the substantiation requirements of section           





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