- 4 - Petitioners claim they are entitled to Schedule A “away from home” employee business expense deductions of $23,149, $36,402, and $22,532 for years 1994, 1995, and 1996, respectively. Petitioner claims these expenses were for transportation to and from Fremont and meals and lodging while in Fremont. Respondent disallowed the away from home expenses. Discussion Deductions are a matter of legislative grace. See New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Taxpayers bear the burden of proving that they are entitled to their claimed deductions. See Welch v. Helvering, 290 U.S. 111, 115 (1933). A taxpayer ordinarily may not deduct a personal expense. See sec. 262. Section 162(a), however, allows a taxpayer to deduct traveling expenses incurred while away from home. A taxpayer may deduct traveling expenses under section 162(a)(2) if he satisfies the following three conditions: (1) The expense must be reasonable and necessary; (2) it must be incurred while away from home; and (3) it must be incurred in the pursuit of a trade or business. See Commissioner v. Flowers, 326 U.S. 465, 470 (1946). A “taxpayer shall not be treated as being temporarily away from home during any period of employment if such period exceeds 1 year.” Sec. 162(a).Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011