Samie M. and Nora L. Finch - Page 8

                                        - 7 -                                         
          Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice              
          Co. v. Helvering, 292 U.S. 435, 440 (1934).                                 
               With these well-established propositions in mind, we must              
          determine whether petitioners have satisfied their burden of                
          proving that they are entitled to the claimed itemized deductions           
          mentioned above.                                                            
          1.   Miscellaneous Itemized Deductions                                      
               As previously stated, on their Schedule A for taxable year             
          2002, petitioners claimed miscellaneous itemized deductions of              
          $28,188 for job expenses incurred during taxable year 2002.  The            
          deduction was claimed for expenses incurred relating to                     
          petitioner’s travel between his residence in Moorefield, West               
          Virginia, and construction/work sites in Baltimore, Maryland,               
          Arlington, Virginia, Union Bridge, Maryland, and Annapolis,                 
          Maryland.  Respondent disallowed the deductions in full.                    
          Respondent determined that petitioners did not substantiate the             
          claimed expenses or, if substantiated, petitioners did not prove            
          that the expenses were not reimbursed by petitioner’s employer;             
          nor did petitioners prove that Moorefield, West Virginia, was               
          petitioner’s tax home.                                                      
               Section 162(a) allows a deduction for ordinary and necessary           
          business expenses paid or incurred during the taxable year in               
          carrying on any trade or business.  For an expense to be                    
          “ordinary” the transaction that gives rise to the expense must be           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011