- 5 -
proceeds from the sale on April 6, 1995. A deduction for
qualified residence interest paid on indebtedness during the year
is allowed under section 163(a) and (h). In this case,
petitioner did not pay the interest on his home during 1994, the
year in issue. He paid it in 1995 when his house was sold.
Accordingly, we sustain respondent's disallowance of the interest
expense deduction.
Petitioner claimed $650 of charitable contributions
deductions. An itemized deduction is generally allowable for
charitable contributions made during a year but only if the
contribution is verified in accordance with regulations
prescribed by the Secretary of the Treasury. Sec. 170(a). Based
on petitioner’s testimony, we allow petitioner a $100 deduction
for charitable contributions. Cohan v. Commissioner, supra.
Petitioner deducted $2,300 of unreimbursed employee business
expenses for union dues and job-hunting expenses. Respondent
conceded $382.68 for union dues. Expenses incurred in looking
for a new job in a taxpayer's current trade or business are
allowed as an itemized deduction. Sec. 162(a); Primuth v.
Commissioner, 54 T.C. 374 (1970). However, if part of the
purpose of a job hunting trip is personal in nature, the personal
portion of the expenses is not deductible. Sec. 262. Petitioner
stated that he looked for jobs in Jackson and Gulfport,
Mississippi, and that the expenses he claimed were for mileage.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011