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travel expenses are deductible only if the travel is related
primarily to the taxpayer’s business. Sec. 1.162-2(b)(1), Income
Tax Regs. An important factor in this regard is the amount of
time spent on personal activities compared to the time spent on
activities related to the taxpayer’s trade or business. Sec.
1.162-2(b)(2), Income Tax Regs. The Court holds that the
expenses deducted by petitioners in this regard do not meet the
tests of section 1.162-2(b)(1), Income Tax Regs. Petitioners’
trips were primarily personal, and the job interviews petitioner
had while on these trips were incidental and not the primary
reason for the trips. Petitioners, therefore, are not entitled
to job searching expenses in excess of any amounts that may have
been allowed by respondent.
As noted earlier, respondent made several concessions.
Those concessions and the amounts are highlighted in respondent’s
Brief in Answer, which was filed by respondent after trial.
Those concessions will be reflected in the decision to be
entered.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011