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The second issue for decision is whether petitioner is
entitled to deduct certain expenses relating to his law practice
on Schedule C in excess of amounts allowed by respondent. The
expenses claimed included car and truck expenses, meals, travel,
and miscellaneous expenses for memberships, parking, and
charitable contributions.4
Section 162 allows a deduction for ordinary and necessary
expenses that are paid or incurred during the taxable year in
carrying on a trade of business. Sec. 162(a); Deputy v. du Pont,
308 U.S. 488, 495 (1940). In the case of travel expenses and
certain other expenses, such as entertainment, gifts, and
expenses relating to the use of listed properties, including
passenger automobiles under section 280F(d)(4)(A), section 274(d)
imposes stringent substantiation requirements to document
particularly the nature and amount of such expenses. For such
expenses, substantiation of the amounts claimed by adequate
records or by other sufficient evidence corroborating the claimed
4 Because petitioner is not entitled to itemize
deductions on Schedule A, he cannot claim union dues as a
miscellaneous itemized deduction. Sec. 67(b); Butler v.
Commissioner, T.C. Memo. 1998-355. Moreover, the dues were not
ordinary and necessary business expenses. Petitioner, a lawyer,
"joined" a food and commercial workers' union for the personal
benefit of obtaining insurance. The record contains no evidence
of any benefit to the law practice of petitioner's union
"membership". Cf. Boyd Constr. Co. v. United States, 168 Ct. Cl.
579, 339 F.2d 620, 623 (1964) (union dues paid by a construction
company on behalf of an officer were deductible where evidence
showed there was a substantial benefit to the corporation).
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