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(2) Whether section 274(a)(3) precludes Mr. Garcia from
deducting golf club membership fees5 as ordinary and necessary
business expenses under section 162(a). We hold it does.
Some of the facts have been stipulated and are so found.
The stipulation of facts and accompanying exhibits are
incorporated by this reference. Petitioners resided in La Porte,
Texas, at the time they filed the petition.
In 2000, Mrs. Garcia was an English teacher, and Mr. Garcia
was the head golf coach at Deer Park High School in Houston,
Texas. Petitioners claimed deductions for employee business
expenses on Schedule A, Itemized Deductions, of their 2000
Federal income tax return in connection with Mrs. Garcia’s
employment as a high school English teacher and Mr. Garcia’s
employment as a high school golf coach.
Mrs. Garcia claimed expenses for movies, theater tickets,
videos, supplies, film and film developing costs, drycleaning,
book and periodical subscriptions, gifts, and travel. The $365
movie expense included movie theater admission tickets for Mrs.
Garcia to see 73 movies she deemed relevant in teaching English.
5In the stipulation of settled issues, the parties still
dispute $144 for supplies, $35 for cell phone expenses and $3 for
meals regarding expenses Mr. Garcia claimed in addition to the
country club membership fees of $1,628. Because petitioners
failed to address the expenses other than the country club fees
during trial or on brief, petitioners are deemed to have conceded
these disputed amounts. The only expenses still at issue
regarding expenses Mr. Garcia claimed are the $1,628 country club
membership fees.
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