- 8 - 2. Income From MetLife Petitioner does not dispute that he received $6,005 from MetLife. Furthermore, he concedes the $2,160 he received during the training period is self-employment income. With respect to the remaining $3,845, however, he contends this amount does not represent earnings from the training period. Petitioner believes the $3,845 was reimbursement for the cost of establishing a business office and, therefore, is excludable from gross income. In the alternative, petitioner appears to contend that even if the $3,845 is includable in gross income, it is wage income rather than self-employment income because he received payment after he became an employee. Under some circumstances, an employee’s gross income does not include amounts received from his employer for reimbursement of business expenses. See, e.g., Biehl v. Commissioner, 118 T.C. 467, 473-474 (2002), affd. 351 F.3d 982 (9th Cir. 2003); Anaheim Paper Mill Supplies, Inc. v. Commissioner, T.C. Memo. 1978-86; sec. 1.162-17(b) and (c), Income Tax Regs. In this case, however, petitioner has failed to establish that the $3,845 was reimbursement for business expenses. To the contrary, MetLife’s business records indicate the $3,845 was income that petitioner earned during the training period. To refute these documents, petitioner offers only his uncorroborated testimony that one or more MetLife employees told him the $3,845 was for office startup expenses. His testimony alone, however, does not overcome thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011