Richard V. Frederick and Nancy M. Frederick - Page 5

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               Starting in February 1998, petitioner began working for                
          Molly Maid, Inc.  He worked there throughout 1998.  In January              
          1999, petitioners and their golden retrievers, Morgan and Cujo,             
          moved from Michigan to Virginia where petitioner began to work              
          for Argenbright Security.                                                   
               Petitioners lived in a house that they rented in Virginia              
          during 1999.  Because they had two dogs, their landlord required            
          them to make what petitioner referred to as an “additional”                 
          security deposit.                                                           
               The Leader Dog School for the Blind is located in Rochester            
          Hills, Michigan, about 130 miles from where petitioners resided             
          during 1997 and 1998.  From time to time during 1999, petitioners           
          traveled by car from their home in Virginia to Michigan.                    
          Petitioner did not keep a mileage log or other records related to           
          the expenses incurred during these trips.                                   
               Petitioners owned two cars during the years in issue.                  
          According to their automobile insurance policy, one car was                 
          insured for “pleasure” use, and the other car was insured “to               
          drive to work or school more than 3 miles but less than 15                  
          miles”.                                                                     
               Petitioners’ 1997 return was prepared by a paid income tax             
          return preparer.  Included with petitioners’ 1997 return are the            
          following schedules or forms:  (1) Schedule A, Itemized                     
          Deductions; (2) Form 2106-EZ, Unreimbursed Employee Business                






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