John C. and Joan F. Stukes - Page 13




                                       - 12 -                                         
              Petitioners’ claimed deduction for job search expenses of               
         $7,930 consisted of:  The cost of transportation to job                      
         interviews, the cost of retaining a search firm to assist with               
         the search, and the cost of preparing and printing Mr. Stukes’s              
         calling cards, résumé, and envelopes.  Respondent does not                   
         dispute that petitioners would be entitled to deduct these                   
         expenses if they substantiated them adequately, but respondent               
         maintains that they failed to do so.                                         
              As discussed supra, section 274, which imposes strict                   
         substantiation requirements, applies to transportation expenses              
         involving a “passenger automobile”.  In order to establish the               
         number of miles Mr. Stukes drove pursuant to his job search,                 
         petitioners submitted a log captioned “Job Search Mileage                    
         Expenses/Deductions” (petitioners’ job search mileage log) which             
         was not prepared contemporaneously with the interviews but rather            
         was prepared on the basis of contemporaneous calendar records and            
         bank statements that show costs incurred on specific dates.                  
              It appears from the record that Mr. Stukes was terminated               
         from his employment in June 2002.  We find that petitioners’ job             
         search mileage log, taken together with the calendar, bank                   
         records, and Mr. Stukes’s credible testimony, substantiates the              
         transportation expense in search of a job between June and                   










Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next 

Last modified: November 10, 2007