Roger F. and Carolyn R. Ellis - Page 9




                                        - 8 -                                         
          trips were taken for employment-related purposes.  On those                 
          occasions when Carolyn R. Ellis accompanied petitioner, he                  
          explained that she did so as his “advisor”.  We think it more               
          likely than not that the trips were taken primarily for personal            
          purposes; that is, so that one or both petitioners could visit              
          their children.  The expenses of those trips constitute                     
          nondeductible personal or family expenses.  See sec. 262.                   
          The car expense deduction is allowable only if petitioner                   
          maintained substantiating records.  See secs. 274(d), 280F.                 
          Assuming, without finding, that petitioner’s records otherwise              
          satisfy the requirements of section 274(d) and the regulations              
          promulgated thereunder, we reject them as unreliable.                       
          Petitioner’s records indicate that he drove to the offices of one           
          prospective employer numerous times during 1995; the prospective            
          employer claims no contacts were made.  Similarly, other                    
          prospective employers could not confirm petitioner’s claims to              
          have contacted them during the years in issue.  Rejecting                   
          petitioner’s substantiating records, in effect, operates to deny            
          any deduction for car expenses.                                             
               We could continue to discuss other deductions claimed on the           
          Schedules C, but given our conclusion that the expenses are not             
          deductible as trade or business expenses in the first place, we             
          see little purpose in doing so.  Respondent’s adjustments                   








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011