David Llewellyn and Kay Marie Rose - Page 11




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          ordinary and necessary business expenses of an employee for                 
          lodging, meals, and/or incidental expenses incurred while                   
          traveling away from home will be deemed substantiated for                   
          purposes of section 274(d).  These revenue procedures also                  
          provide an optional method for employees and self-employed                  
          individuals to substantiate the amount of business, meal, and               
          incidental expenses incurred while traveling away from home.                
          Petitioner relies on these revenue procedures to support the per            
          diem expense deductions claimed for the days he was in San Diego            
          during the years at issue.4                                                 
               While section 4.01 of each of the aforementioned revenue               
          procedures authorizes the per diem method to substantiate                   
          lodging, meal, and incidental costs, the per diem method is                 
          available only to employers who pay a per diem allowance in lieu            
          of reimbursing the actual expenses an employee incurs while                 
          traveling away from home.  Therefore, petitioner’s claimed San              
          Diego expenses are not included within this provision because he            
          was self-employed in connection with the air racing activity.               
          Although petitioner, as a self-employed individual, is entitled             
          to rely on the per diem method allowed under section 4.03 of each           
          of the aforementioned revenue procedures, such reliance is                  

               4    Petitioner repeatedly made reference to Rev. Proc. 93-            
          50, 1993-2 C.B. 586; however, this revenue procedure was not in             
          effect for any of the years at issue but, rather, was effective             
          from Jan. 1 through Dec. 31, 1994.                                          





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