- 8 - for Southeast. Mr. Fugitt only offered his unsupported and uncorroborated testimony. We are not required to, and do not, accept Mr. Fugitt’s self-serving testimony. See Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). The testimony and records of Mr. Ruess and Mr. Osburn corroborate the Form 1099 issued by Southeast that Mr. Fugitt was paid total sales commissions and per diem payments in 1999 of $19,125. Under section 61(a), the sales commissions portion of Mr. Fugitt’s income must be included in petitioners’ gross income. Since Mr. Fugitt did not meet the requirements of section 1.162-17(b)(1), Income Tax Regs., the per diem portion must also be included in petitioners’ gross income. Thus, the Form 1099 issued to Mr. Fugitt reporting income of $19,125 correctly reflected income he earned as a salesman for Southeast during 1999. Accordingly, we sustain respondent’s determination and hold that petitioners failed to report self-employment income in the amount of $19,125.8 8 Petitioners are allowed a deduction of 50 percent of the meals expenses incurred by Mr. Fugitt while traveling away from home during 1999. See secs. 162(a)(2), 274(n). Mr. Fugitt, as a self-employed individual, may deduct an amount for meals expenses computed at the Federal Meals and Incidental Expenses (M&IE) rate for 1999 as an alternative to deducting the actual cost of meals incurred while traveling away from home. See sec. 1.274-5T(j), Temporary Income Tax Regs., 50 Fed. Reg. 46032 (Nov. 6, 1985); Rev. Proc. 98-64, 1998-2 C.B. 825. Given that the applicable Federal M&IE rate for 1999 is $30 per day, we hold that petitioners’ deduction for Mr. Fugitt’s meals expenses is limited to 50 percent of $3,180 ($30 per day x 106 days), or $1,590. See 41 C.F.R. sec. 301, Appendix A (1998).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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