- 12 - in fact seeking a job, it was not in connection with his claimed self-employment activity. All of the interviews petitioner had related to the practice of medicine, as an employee. Therefore, to the extent petitioner incurred any job search expenses, those expenses would not be a Schedule C trade or business expense. The expense would be an employee business expense that would be claimed on Schedule A of the tax return. Section 162(a) allows a deduction for ordinary and necessary business expenses. It is recognized that such deductible expenses include those incurred searching for new employment in the employee’s same trade or business. Cremona v. Commissioner, 58 T.C. 219 (1972); Primuth v. Commissioner, 54 T.C. 374 (1970). The evidence in this case shows that petitioner was interviewed on several occasions for employment as a medical doctor (and not as an unpaid consultant/adviser). As also noted and described, petitioner’s job search consisted of two extended trips he and his wife took, by mobile home, during 1999 and 2000, which included essentially the east and west coasts of the United States. On each of these trips, petitioners visited members of their families and numerous tourist attractions. The job interviews petitioner had were, in the Court’s view, incidental to the main purpose of the trips--to visit family and tourist attractions. Petitioners essentially took a vacation and claimed the expenses as tax deductions. The regulations provide thatPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011