Kenneth G. Schladweiler - Page 10

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          1994.2  Petitioner’s 1994 meal expense is $650, resulting in an             
          allowable deduction for meals of $325 after the 50-percent                  
          limitation of section 274(n)(1).                                            
               Our review of the record in this case confirms that                    
          respondent’s concessions as to meals consumed by petitioner are             
          reasonable under the circumstances.  Respondent’s concessions,              
          however, do not cover petitioner’s drivers who, like petitioner,            
          incurred hotel and meal expenses in connection with petitioner’s            
          business, which petitioner claims he paid.  The documentation               
          reviewed and summarized by respondent in Appendix 1 to                      
          respondent’s brief confirms that petitioner had motel receipts              
          reflecting that three of petitioner’s drivers stayed overnight at           
          a motel 44 nights during 1992 and 3 nights during 1993.                     
          Unfortunately, petitioner introduced no evidence to show whether            
          and in what amount he reimbursed those drivers for their food               
          costs during 1992 and 1993.  Because we have no factual record              
          regarding petitioner’s possible reimbursement of his drivers’               
          meals during 1992 and 1993, we cannot determine whether                     
          petitioner is entitled to additional deductions for meals in 1992           

               2One of the motel receipts was indecipherable and,                     
          consequently, is not taken into account in our calculation of the           
          number of nights petitioner stayed in a motel during 1994 on                
          business.  Other receipts showed that one of petitioner’s                   
          drivers, Raymond Whitmore, also rented a room on the same dates             
          and at the same motel as petitioner.  Mr. Whitmore was reimbursed           
          by petitioner during 1994 for lodging and meals, and respondent             
          has conceded that petitioner is entitled to the deduction claimed           
          for the reimbursement.                                                      

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