Hector Prowse - Page 16

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          is one incurred in a transaction that frequently or commonly                
          occurs in the type of business involved.  Deputy v. Du Pont, 308            
          U.S. 488, 495 (1940).  A “necessary” expense is one that is                 
          “appropriate and helpful” to the taxpayer’s business.  Welch v.             
          Helvering, 290 U.S. 111, 113 (1933).  Expenses allowable under              
          section 162 must be “directly connected with or pertaining to the           
          taxpayer’s trade or business”.  Sec. 1.162-1(a), Income Tax Regs.           
          Personal, living, and family expenses are not deductible.  Sec.             
          262(a).                                                                     
               An employee is generally recognized as being in the trade or           
          business of being an employee and may deduct employment-related             
          expenses if the requirements of section 162 are met.                        
          Commissioner v. Flowers, 326 U.S. 465 (1946).  However, “A trade            
          or business expense deduction is not allowable to an employee to            
          the extent that the employee is entitled to reimbursement from              
          his or her employer for an expenditure related to his or her                
          status as an employee.”  Lucas v. Commissioner, 79 T.C. 1, 7                
          (1982).  If an employee could have requested reimbursement from             
          his employer and fails or neglects to do so, he may not claim a             
          deduction for the expenses under section 162.  Id.; see also                
          Orvis v. Commissioner, 788 F.2d 1406 (9th Cir. 1986), affg. T.C.            
          Memo. 1984-533; Kennelly v. Commissioner, 56 T.C. 936, 943                  
          (1971), affd. without published opinion 456 F.2d 1335 (2d Cir.              
          1972).                                                                      






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