Lucy M. Wiggins - Page 13




                                       - 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 $975           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011