- 26 -
Performance of services as an employee constitutes a trade
or business. O’Malley v. Commissioner, 91 T.C. 352, 363-364
(1988). Telephone expenses may be deductible under section
162(a) if the expenses incurred are ordinary and necessary in
carrying on a trade or business. Hairston v. Commissioner, T.C.
Memo. 1995-566, affd. without published opinion 116 F.3d 492
(11th Cir. 1997); Green v. Commissioner, T.C. Memo. 1989-599.
Any charge for basic local telephone service with respect to the
first telephone line provided to any residence of the taxpayer
shall be treated as a personal expense. Sec. 262(b).
We conclude that petitioners are entitled to deductions for
expenses for the second telephone line used in connection with
Mrs. Whitehurst’s trade or business of $41.75 for 1997, $258.04
for 1998, and $44.79 for 1999.
Petitioners also produced carbon copies of checks made
payable to the telephone company that reflect an account number
different from the account number written on the bill discussed
above. These checks were not written to pay for the telephone
line used by Mrs. Whitehurst in connection with her trade or
business but were for a personal home telephone; therefore, the
amounts reflected therein are not deductible. Id.
c. Equipment and Supplies
Petitioners claimed deductions for unreimbursed employee
expenses for equipment and supplies for 1997, 1998, and 1999,
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011