Michael G. and Kate M. Lavigne - Page 5




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                 1998        1999                                                     
          Charitable contributions             $ 5,299     $ 7,071                    
          Unreimbursed employee expenses and                                          
          tax preparation fees (before the                                            
          sec. 67(a)limitation)                11,632      18,082                     

               Petitioners acknowledged at trial that their actual                    
          charitable contributions were considerably less than the amounts            
          claimed on their returns but ventured no estimate as to the                 
          correct amount of their actual contributions.  They presented               
          meager evidence reflecting nominal contributions to                         
          organizations, such as the Fraternal Order of Police and Special            
          Olympics of New Mexico, as well as a handwritten list of clothing           
          and other items donated to "Joy Junction" during one of the years           
          at issue.                                                                   
               The unreimbursed employee expenses claimed represented                 
          expenses incurred by Mr. Lavigne in the use of his personal                 
          vehicle in connection with his employment.  No logs or other                
          records were maintained by him with respect to these expenses.              
               With respect to the first issue regarding petitioners'                 
          entitlement to deductions for unreimbursed employee business                
          expenses, petitioners did not maintain logs or other records to             
          substantiate the amounts claimed for such expenses on their                 
          returns.  Such deductions are subject to the strict                         
          substantiation requirements of section 274(d).  In the absence of           
          records that would satisfy section 274(d), the Court holds that             




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