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attributable to car expenses. The deduction for job hunting
expenses relates to the cost of airfare and other traveling
expenses incurred when petitioner traveled from Michigan to
Arizona to look for a new job. Authority for deducting these
types of expenses is found in section 162(a), which, in general,
allows “as a deduction all the ordinary and necessary expenses
paid or incurred during the taxable year in carrying on any trade
or business”, including a taxpayer’s trade or business as an
employee. See Primuth v. Commissioner, 54 T.C. 374, 377-378
(1970). Deductions for travel and transportation expenses
otherwise allowable under section 162(a), however, are subject to
strict substantiation requirements, see sec. 274(d)(1); sec.
1.274-5T, Temporary Income Tax Regs., 50 Fed. Reg. 46006 (Nov. 6,
1985), which petitioners have failed to satisfy.
It is not clear whether the section 274(d) substantiation
requirements are applicable to the portion of the unreimbursed
employee expense deduction identified on the Form 2106-EZ as
“business expenses”, since those expenses are neither
specifically described on petitioners’ return nor explained by
petitioner at trial. Petitioners’ failure to explain the
deduction is grounds for its denial. Petitioners are not
entitled to the miscellaneous itemized deduction claimed on their
1997 Federal income tax return, and respondent’s disallowance of
that deduction is sustained.
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