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burglarized. According to the police report, a briefcase was
stolen from the front seat of petitioners’ car.
In the notice of deficiency, respondent disallowed the
employee business expense deduction claimed on the Schedule A.
With respect to the deductions claimed on the Schedule C,
respondent disallowed the car and truck expense deduction, the
rent or lease expense deduction, and $3,058 of the $3,765
deduction claimed as “Other expenses”. Each deduction was
disallowed upon the ground that petitioners failed to establish
that “any amount was paid * * * or, if paid, was for ordinary and
necessary business or investment expenses”. Other adjustments
made in the notice of deficiency need not be discussed.
Discussion
1. Schedule A Employee Business Expense Deduction
During 1996, Guido Lemos was employed as a supervisor in the
shipping department of Cintas. According to petitioners, it was
his responsibility to ensure that the delivery trucks dispatched
from the company contained the proper cargo. According to
petitioners, if an item was erroneously omitted from a designated
shipment, Mr. Lemos, without his employer’s knowledge, used his
own car to deliver the item to the customer, sometimes at
substantial distances from his place of work. The deduction
claimed for employee business expenses consists of automobile and
other travel expenses claimed to have been incurred by Mr. Lemos
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