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F.3d 938 (1st Cir. 1995). No deduction is allowed for personal,
living, or family expenses. Sec. 262.
Section 274(n)(1) limits a deduction for meals and
entertainment to 50 percent of the expenses incurred. The
percentage limitation may be increased in special circumstances.
Sec. 274(n)(3). Petitioner did not take into account the section
274(n) limitation with respect to his claimed meals expense
deduction of $10,255.
Petitioner incurred his trucking supplies expenses and car
and truck expenses as an employee truck driver. With respect to
the amounts that respondent determined to be unreimbursed
employee expenses attributable to petitioner’s employment as a
truck driver, petitioner is entitled to deduct these expenses as
miscellaneous itemized deductions subject to the 2-percent floor
of section 67. Secs. 62, 67, 162; Gonzalez v. Commissioner, T.C.
Memo. 1997-430. Additionally, petitioner’s meal expenses are
subject to the limitation of section 274(n). On this record, we
sustain respondent’s recharacterization of these Schedule C
deductions as Schedule A miscellaneous itemized deductions
subject to the 2-percent adjusted gross income limitation. We
also sustain the disallowance of a portion of petitioner’s
deduction for meals expenses.
Next, we consider whether petitioner is entitled to an NOL
deduction in excess of the amount allowed by respondent.
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