Anke Lunsmann-Nolting - Page 13

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          taxes on Schedule A.  Secs. 164(a)(1), 183(b)(1).  Petitioner’s             
          deductions for depreciation and the remaining expenses claimed on           
          Schedule E, to the extent not conceded by respondent, are                   
          disallowed under section 183(a).                                            
          Section 162                                                                 
               Although not raised by either party, the Court will briefly            
          examine whether petitioner may claim the deductions relating to             
          the cottage as unreimbursed employee business expenses under                
          section 162(a).                                                             
               Taxpayers may deduct “ordinary and necessary” expenses paid            
          or incurred during the taxable year in carrying on a trade or               
          business.  Sec. 162(a).  Services performed by an employee                  
          constitute a trade or business for this purpose.  O’Malley v.               
          Commissioner, 91 T.C. 352, 363-364 (1988).  An employee cannot              
          deduct trade or business expenses to the extent that the employee           
          is entitled to reimbursement from her employer for expenditures             
          related to her status as an employee.  Lucas v. Commissioner, 79            
          T.C. 1, 6 (1982).                                                           
               An “ordinary” expense is one that is common and acceptable             
          in the particular business.  Welch v. Helvering, 290 U.S. at 113-           
          114.  A “necessary” expense is an expense that is appropriate and           
          helpful in carrying on a trade or business.  Heineman v.                    
          Commissioner, 82 T.C. 538, 543 (1984).  Whether an amount claimed           
          constitutes an ordinary and necessary expense as an employee                
          business expense is a question of fact to be determined from the            




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