Ann Jorgensen - Page 23

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          travels does not subvert their business purpose.  On the basis of           
          the record, we find that petitioner spent most of her time in               
          Greece and in Southeast Asia participating in the U.C. Extension            
               Petitioner, however, has not established that the $240                 
          expense she incurred for hotel accommodations before the                    
          Legendary Greece course began is attributable to business                   
          activity.  Petitioner testified that she arrived 2 days early in            
          Greece so that she would have an opportunity to recover from jet            
          lag before the course began.  We find this expense to be                    
          attributable to personal activity.                                          
               We thus hold that petitioner's education and travel                    
          expenses, with the exception of the $240, are ordinary and                  
          necessary business expenses within the meaning of section 162.              
               In addition to being subject to the requirements of section            
          162 and the provisions under section 274 already discussed, a               
          taxpayer's deductions for certain travel expenditures are subject           
          to other provisions of section 274.  Respondent, however, has not           
          challenged petitioner's travel expenses under the substantiation            
          requirements of section 274(d) or under the limitation on meal              

               5  Although respondent does not contend that petitioner’s              
          travel expenses are subject to the provisions of sec. 274(c), the           
          regulations issued under this section tend to support our                   
          determination that petitioner was primarily engaged in business             
          activity during the time she spent in Greece and in Southeast               
          Asia.  See sec. 1.274-4(d)(2), Income Tax Regs.                             

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