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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