- 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).
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