Brian F. Nicely - Page 5

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          expenses,3 a $50 tax preparation fee, and $600 of expenses for              
          certain unidentified clothes and gloves and Rocky Wolverine                 
          boots.4  Respondent counters that petitioner has failed to carry            
          his burden of establishing his entitlement to deduct any of those           
          claimed expenses.5                                                          
               A taxpayer is entitled to deduct all the ordinary and                  
          necessary expenses paid or incurred during the taxable year in              
          carrying on a trade or business, “including * * * traveling                 
          expenses (including amounts expended for meals * * * other than             
          amounts which are lavish or extravagant under the circumstances)            
          while away from home in the pursuit of a trade or business”.                
          Sec. 162(a).  For certain kinds of expenses otherwise deductible            
          under section 162(a), a taxpayer must satisfy certain substantia-           
          tion requirements set forth in section 274(d) before such ex-               
          penses will be allowed as deductions.                                       
               In order for petitioner’s claimed expenses for the use of              
          his automobile and for meals to be deductible, such expenses must           

               3In the 2002 Form 2106-EZ, petitioner claimed total meal               
          expenses of $7,904, which he reduced by 50 percent, as required             
          by sec. 274(n).                                                             
               4Although the Court ordered petitioner to file a posttrial             
          brief, he failed to do so.                                                  
               5Respondent conceded at trial that petitioner incurred a tax           
          preparation fee of $50.  Respondent’s concession will not affect            
          the deficiency determined in the notice unless we were to sustain           
          petitioner’s position with respect to his claimed expenses for              
          the use of his automobile and/or meals.  That is because of the             
          two-percent floor imposed by sec. 67(a).                                    

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Last modified: May 25, 2011