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We have examined petitioners’ cellular phone records in
detail. Petitioners paid a flat fee for their cellular phones as
long as phone usage was within a certain limit per month and used
the phones for both personal and business calls. Petitioners
therefore did not incur any expenses to use their cellular phones
for business purposes in addition to those they would have
incurred had they used their cellular phones only for personal
reasons. Further, any approximation or estimation of cell phone
expenses attributable to business use is prohibited under section
274(d). Petitioners are therefore not entitled to deduct any
cellular phone expenses for 2003.
Equipment Expenses
Petitioners claimed $795 of equipment expenses to rent and
maintain the laptop computer MetLife required Mr. Soholt to have
for his business. Computers and peripheral equipment are “listed
property” and are therefore subject to the strict substantiation
requirements. Sec. 280F(d)(4)(A)(iv).
Petitioners introduced a MetLife Human Capital Management
System report indicating that a total of $795 was deducted from
his pay during 2003 for the laptop. Mr. Soholt testified that he
was required to have $15 deducted from each paycheck for the use
of the laptop and any necessary maintenance. Petitioners
introduced a pay stub showing a $15 deduction from Mr. Soholt’s
pay for the period ending December 28, 2003. Petitioners also
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