Lawrence K. and Ruth L. Harrell - Page 16

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         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.            






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