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Expense Amount
Vehicle 1$2,898
Transportation2 1,150
Travel3 7,875
Business4 9,618
Meals 52,832
1Petitioner calculated the $2,898 of claimed vehicle ex-
penses by using the prevailing IRS standard mileage rate for 2001
of 34.5 cents per mile and multiplying that rate by 8,400, the
number of miles that petitioner claims he drove two automobiles
(viz., a 1999 Mercedes Benz SLK 230 (Mercedes) and a 2001 Volvo
C70cv (Volvo)) for business (business miles) during that year.
2In the 2001 Form 2106, the expense category “Transporta-
tion” covered “Parking fees, tolls, and transportation, including
train, bus, etc. that did not involve overnight travel or commut-
ing to and from work.” Petitioner did not specify in the 2001
Form 2106 the type(s) of transportation expenses that he was
claiming.
3In the 2001 Form 2106, the expense category “Travel” cov-
ered “Travel expense while away from home overnight, including
lodging, airplane, car rental, etc.”, but not expenses for meals
or entertainment. Petitioner did not specify in the 2001 Form
2106 the type(s) of travel expenses that he was claiming.
4In the 2001 Form 2106, the expense category “Business”
covered business expenses not included in the expense categories
“Vehicle”, “Transportation” and “Travel”. Petitioner did not
specify in the 2001 Form 2106 the type(s) of business expenses
that he was claiming.
5In calculating the $2,832 of claimed meal expenses, peti-
tioner claimed in the 2001 Form 2106 total meal expenses of
$5,664 and reduced that total by 50 percent, as required by sec.
274(n).
As required by section 67(a), petitioner reduced the $24,373
of job expenses claimed in the 2001 Schedule A by two percent of
his adjusted gross income (i.e., by $1,055). In determining the
taxable income reported in petitioner’s 2001 return, petitioner
deducted the balance (i.e., $23,318), as well as the other
itemized deductions claimed in the 2001 Schedule A that were not
subject to the two-percent floor imposed by section 67(a).
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Last modified: May 25, 2011