- 6 -
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).
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011