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The unreimbursed employee business expenses consisted of job
search expenses incurred by Mr. Stukes. Mr. Stukes worked in the
computer industry, and during part of 2002 had been employed in
Austin, Texas, as a software development manager for a company
that produced energy software. In 2002, he was involuntarily
terminated from that job, which led him to file a complaint with
the Equal Employment Opportunity Commission (EEOC), alleging that
his termination was the result of age discrimination. While that
matter was pending, Mr. Stukes commenced an intensive search for
a new job and succeeded in finding employment in January of 2003.
During his search for employment, Mr. Stukes provided his
attorney with documentation to assist with the preparation of the
EEOC proceeding. He testified that this documentation had
subsequently been destroyed.
Job search expenses are deductible under section 162(a) to
the extent they are incurred in searching for new employment in
the employee’s same trade or business. See Primuth v.
Commissioner, 54 T.C. 374, 377-378 (1970). However, if the
employee is seeking a job in a new trade or business, the
expenses are not deductible under section 162(a). See Frank v.
Commissioner, 20 T.C. 511, 513-514 (1953). Job search expenses
include preparation expenses, postage, and travel and
transportation expenses. See Murata v. Commissioner, T.C. Memo.
1996-321.
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Last modified: November 10, 2007