Kevin J. and Crystal A. Shoemaker - Page 21

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         Claimed Pager Expenses                                                       
              A taxpayer is entitled to deduct expenses for the use of a              
         pager if such expenses constitute ordinary and necessary expenses            
         paid or incurred during the taxable year in carrying on a trade              
         or business.  Sec. 162(a).                                                   
              Mr. Shoemaker admitted at trial that during 2002 he used the            
         pager in question solely to allow Ms. Shoemaker to contact him in            
         the event of personal emergencies.                                           
              On the record before us, we find that petitioners have                  
         failed to carry their burden of establishing that they are enti-             
         tled for their taxable year 2002 to the deduction under section              
         162(a) that they claim for pager expenses.18                                 


              17(...continued)                                                        
          1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg. 46016              
          (Nov. 6, 1985).                                                             
               18Assuming arguendo that petitioners had established the               
          deductibility under sec. 162(a) of the claimed pager expenses,              
          they would still have to satisfy the requirements of sec. 274(d).           
          We concluded above that we shall not rely upon document one or              
          document two to establish petitioners’ position with respect to             
          any of the claimed expenses, including the pager expenses for               
          which they claim a deduction for 2002.  In addition to document             
          one and document two, petitioners rely on two invoices (pager               
          invoices) totaling $175.76 from All-Ways Communications, LLC, for           
          pager service charges during 2002.  The pager invoices do not               
          establish all of the elements that petitioners must prove in                
          order to satisfy the requirements under sec. 274(d)(4).  See sec.           
          1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg. 46016              
          (Nov. 6, 1985).  On the record before us, we find that petition-            
          ers have failed to carry their burden of establishing all of the            
          elements that they must prove in order to satisfy the require-              
          ments under sec. 274(d) applicable to the claimed pager expenses.           
          See sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg.           
                                                             (continued...)           




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