Philip M. Cavanagh - Page 7

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          section 67(b),  “Miscellaneous itemized deductions”, defined as             
          all itemized deductions other than those specifically enumerated            
          therein, are subject to a 2-percent floor and are allowable “only           
          to the extent that the aggregate of such deductions exceeds 2               
          percent of adjusted gross income.”  Sec. 67(a).  Because trade or           
          business expenses subject to section 62(a)(1), such as                      
          petitioner’s unreimbursed transportation expenses, are not among            
          the deductions listed in section 67(b), they are miscellaneous              
          itemized deductions subject to the 2-percent floor.  Secs. 62,              
          67, 162; see also Alexander v. Commissioner, 72 F.3d 938, 946               
          (1st Cir. 1995), affg. T.C. Memo. 1995-51.                                  
               Further, Rev. Rul. 90-23, 1990-1 C.B. 28, 30,3 advises                 
          petitioner to report his transportation expenses as miscellaneous           
          itemized deductions.  For a taxpayer with one or more regular               
          places of business:  “If the taxpayer is an employee, the                   
          taxpayer may deduct * * * daily transportation expenses only as a           
          miscellaneous itemized deduction subject to the 2-percent floor             
          provided in section 67 of the Code.”  Id. (emphasis added).                 

               3Although revenue rulings are not binding on the courts, see           
          e.g., Stubbs, Overbeck & Associates v. United States, 445 F.2d              
          1142, 1146-1147 (5th Cir. 1971), they may be helpful and                    
          persuasive, Twin Oaks Cmty., Inc. v. Commissioner, 87 T.C. 1233,            
          1252 (1986).                                                                

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