- 6 - Discussion6 As previously stated, on his Schedule C for taxable years 2000 and 2001 petitioner deducted business expenses of $16,059 and $16,107, respectively. The parties agreed, at trial, that petitioner substantiated truck expenses of $12,757 and $12,657 for the taxable years 2000 and 2001, respectively. As we understand it, petitioner’s principal contention is that he was individually and independently in the business of leasing his truck to his employer, and that the agreed-upon expenses incurred for maintenance and repairs of his truck were deductible as ordinary and necessary expenses of conducting that business and thus were above-the-line Schedule C deductions. On the other hand, respondent contends that the agreed-upon expenses are deductible as unreimbursed employee business expenses and thus are itemized deductions subject to the 2- percent floor of section 67. It is well established that a taxpayer is engaged in a trade or business if the taxpayer is involved in the activity (1) with continuity and regularity, and (2) with the primary purpose of making a profit. Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987); Antonides v. Commissioner, 893 F.2d 656, 659 (4th Cir. 6We decide the issue in this case without regard to the burden of proof. Accordingly, we need not decide whether the general rule of sec. 7491(a)(1) is applicable in this case. See Higbee v. Commissioner, 116 T.C. 438 (2001).Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011