- 12 - Income Tax Regs. Performance of services as an employee constitutes a trade or business. O’Malley v. Commissioner, 91 T.C. 352, 363-364 (1988). Section 274 provides more stringent substantiation requirements for deductions with respect to any passenger automobile under section 280F(d)(4)(A)(i). Sec. 274(d)(4). The cost of clothing may be deductible if: (1) The clothing is of a type specifically required as a condition of employment; (2) it is not adaptable to general usage as ordinary clothing; and (3) it is not so worn. Yeomans v. Commissioner, 30 T.C. 757, 767 (1958). Petitioner claimed a deduction for unreimbursed employee expenses of $2,400. Petitioner explained at trial that the unreimbursed employee expenses include parking tickets and transportation expenses, but she did not specify what expenses she incurred, how the expenses relate to her employment, why she is entitled to a deduction for the expenses, or the amount of each expense. In addition, petitioner did not substantiate the claimed deduction for the unreimbursed employee expenses. We conclude that petitioner is not entitled to a deduction for the claimed unreimbursed employee expenses, and respondent’s determination is sustained. Petitioner claimed a deduction for $2,500 as an expense for care of work clothing, but she testified that she paid about $975Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011