Royal and Shelly Spence Wiley - Page 7




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                 1998        1999                                                     
          Unreimbursed employee expenses                                              
          (before the sec. 67(a)                                                      
          limitation)                         $13,788      $11,110                    
          Tax preparation fees                     500        1,200                   
          Totals                             $14,288      $12,310                     

          These amounts were disallowed in the notice of deficiency.  At              
          trial, respondent conceded petitioners' entitlement to                      
          deductions, subject to the section 67(a) limitation, of $65 and             
          $1,220, respectively, for 1998 and 1999 for tax preparation fees.           
               The unreimbursed employee expenses relate to petitioner's              
          use of his vehicle, both locally and away from home, in                     
          connection with his employment, a home computer used in                     
          connection with his employment, and special clothing required at            
          work.  Petitioners also included as part of their vehicle                   
          expense, the mileage for use of their vehicle in connection with            
          their charitable contributions.                                             
               Petitioners presented no documentation that would satisfy              
          the requirements for deduction of travel expenses away from home,           
          including meals and lodging.  To deduct such expenses, section              
          162(a)(2) requires substantiation of the amounts claimed by                 
          adequate records or by other sufficient evidence corroborating              
          the claimed expenses pursuant to section 274(d).  Sec. l.274-               
          5T(a)(l), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,           
          1985).  To meet the adequate records requirements of section                






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