- 7 - transaction which gives rise to the expense must be of a common or frequent occurrence in the type of business involved. Deputy v. du Pont, 308 U.S. 488, 495 (1940). To be “necessary” an expense must be “appropriate and helpful” to the taxpayer’s business. Welch v. Helvering, 290 U.S. 111, 113-114 (1933). The performance of services as an employee constitutes a trade or business. See sec. 1.162-17(a), Income Tax Regs. The employee must show the relationship between the expenditures and the employment. See Evans v. Commissioner, T.C. Memo. 1974-267. Such deductible expenses include those incurred in searching for new employment in the employee’s same trade or business. Cremona v. Commissioner, 58 T.C. 219 (1972); Primuth v. Commissioner, 54 T.C. 374 (1970). It does not matter whether the search is successful, or even whether the taxpayer accepts a new position when it is obtained. See Cremona v. Commissioner, supra at 221-222; Kenfield v. Commissioner, 54 T.C. 1197, 1199-1200 (1970). It does not matter that the taxpayer is temporarily unemployed while searching, or that the taxpayer is temporarily engaged in a different trade or business while searching for a new position in the trade or business previously conducted by the taxpayer. See Primuth v. Commissioner, supra at 378; Charlton v. Commissioner, T.C. Memo. 1988-515. Job search expenses include resum� preparation expenses, postage, and travel andPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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