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expenses an employee incurs while traveling away from home.
Petitioner’s claimed lodging expenses do not come under this
provision because he was self-employed in connection with his
farming and rental activities.
Accordingly, petitioner’s claimed lodging expenses for each
of the years at issue are not deemed substantiated under the
revenue procedures. Respondent concedes that petitioner has
substantiated lodging expenses of $689.05 for 2002, and the Court
finds that petitioners may deduct $689.05 for 2002. Petitioner
has not substantiated and is not entitled to deduct any amount
for lodging expenses for 2001 or 2003.
Petitioner, as a self-employed individual, however, is
entitled to rely on the per diem method allowed under section
4.03 of the revenue procedures for meals and incidental expenses.
Section 4.03 of the revenue procedures allows a self-employed
taxpayer to use the per diem method for meals and incidental
expenses, provided the taxpayer “substantiates the elements of
time, place, and business purpose of the travel” expenses.
Respondent argues that petitioner failed to substantiate these
elements and, therefore, is not entitled to use the per diem
method for meals and incidental expenses for the years at issue.
We disagree.
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