Conrad Fitzgerald Lewis - Page 24

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          respondent.  Accordingly, respondent’s determination on this                
          issue is sustained.                                                         
               C.  Unreimbursed Employee Expenses                                     
               On petitioner’s Schedule A filed with his Federal income tax           
          return for taxable year 2000, petitioner deducted unreimbursed              
          employee expenses of $2,750 and tax preparation fees of $125.               
          Respondent determined that petitioner did not adequately                    
          substantiate unreimbursed employee expenses above the amount of             
          $1,313.  Accordingly, respondent allowed a deduction for “job               
          expenses and most other miscellaneous deductions” for taxable               
          year 2000 of $1,438.9                                                       
               As previously stated, 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 of a common or frequent occurrence in the type of           
          business involved.  Deputy v. du Pont, 308 U.S. at 495.  To be              
          “necessary” an expense must be “appropriate and helpful” to the             
          taxpayer’s business.  Welch v. Helvering, 290 U.S. at 113-114.              
               The performance of services as an employee constitutes a               
          trade or business.  See sec. 1.162-17(a), Income Tax Regs.  The             
          employee must show the relationship between the expenditures and            

          9Respondent calculated this amount by adding the                            
          substantiated claimed unreimbursed employee expenses of $1,313 to           
          the tax preparation fees allowed of $125.                                   

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