- 15 - substantiation for the claimed deductions for Mrs. Harrell’s travel in the course of her job search. In addition to applying to traveling expenses, the strict substantiation requirements of section 274 apply to deductions with respect to “any listed property (as defined in section 280F(d)(4).” Section 280F(d)(4)(A)(v), in turn, includes “any cellular telephone” in the definition of listed property. The only substantiation petitioners submitted with respect to their cellular telephone expenditures was a letter from Mr. Harrell’s employer stating that Mr. Harrell used his cellular telephone to communicate and conduct business with the company and that he was not reimbursed for those charges. No substantiation was introduced as to: (1) Specific telephone calls made using the cellular telephone; (2) the portion of the use that might be related to Mr. Harrell’s work (rather than to personal calls); or (3) any other matter that would support a claim that the cellular telephone was property used in Mr. Harrell’s trade or business of performing services as an employee. We therefore sustain respondent’s disallowance of this component of the claimed excess unreimbursed employee and other miscellaneous expenses deduction. Finally, petitioners deducted $125 for tax preparation fees. Petitioners used a commercial software package to prepare their 2002 tax return. The record does not reveal the cost of the software package, but we recognize that there in fact was a cost.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011