Richard V. Frederick and Nancy M. Frederick - Page 12

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                        1998 Miscellaneous Itemized Deduction                         
               On a Schedule A included with their 1998 Federal income tax            
          return, petitioners claimed a $1,837 deduction for unreimbursed             
          employee business expenses.  According to petitioner, this                  
          deduction relates to cellular telephone and other unspecified               
          expenses incurred by him as an employee of Molly Maid, Inc.                 
          Deductions for cellular telephone expenses, if otherwise                    
          allowable, are also subject to the substantiation requirements of           
          section 274(d).  See sec. 274(d)(4); sec. 280F(d)(4)(A)(v);                 
          Brodsky v. Commissioner, T.C. Memo. 2001-240.  Petitioners did              
          not attach a Form 2106 to their 1998 return, nor did petitioner             
          maintain any records of the expenses to which the deduction                 
          relates.  Therefore, petitioners are not entitled to the                    
          miscellaneous itemized deduction claimed on their 1998 return               
          because they have failed to satisfy the substantiation                      
          requirements necessary to support such a deduction.  To the                 
          extent that the deduction includes expenses not subject to                  
          section 274(d), they have failed to otherwise establish                     
          entitlement to a deduction for the unspecified and unexplained              
          expenses.  Respondent’s disallowance of the miscellaneous                   
          itemized deduction claimed on petitioners’ 1998 return is                   
          sustained.                                                                  









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