- 6 - activity. In short, as petitioner recognized, the so-called gifts were a part of the compensation he received for being a minister. As such, the transfers are not excludable from income under section 102(a). See Goodwin v. United States, 67 F.3d 149 (8th Cir. 1995); Webber v. Commissioner, 219 F.2d 834 (10th Cir. 1955), affg. 21 T.C. 742 (1954); Banks v. Commissioner, T.C. Memo. 1991-641. B. Schedule C Expenses Section 162(a) allows deductions for ordinary and necessary expenses paid or incurred in carrying on any trade or business including travel expenses while away from home. The taxpayer has the burden of establishing that such expenses were paid or incurred. See Welch v. Helvering, 290 U.S. 111 (1933). In addition, certain other provisions mandate that a taxpayer maintain specific records concerning certain types of expenses. See sec. 274. With these principles in mind we turn to the expenses claimed and in dispute here. 1. Automobile.--Petitioners claimed a deduction of $9,294 for automobile expenses. Respondent disallowed $7,966 of that amount. The deduction claimed was based on the number of miles allegedly driven in connection with petitioner’s ministry. Section 274(d)(4) provides that no deduction shall be allowed with respect to “listed property” unless certain substantiation rules are met. Listed property includes any passengerPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011