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Accounting Fees
Petitioner claimed a deduction in 2003 of $360 for
accounting fees as an unreimbursed employee business expense.10
Petitioner testified that he paid his return preparer in cash.
He did not produce any receipts.
It is apparent from the evidence that petitioner paid to
have his 2003 Federal income tax return prepared.11 We conclude
that petitioner is entitled to a deduction for tax preparation
expenses paid in 2003 in the amount claimed, $360.
Computer
Petitioner claimed a deduction of $2,285 for a computer but
did not produce any receipts or other records to support the
deduction. Computers are listed property, subject to the strict
substantiation requirements of section 274(d). Secs. 274(d),
280F(d)(4)(A)(iv). Accordingly, we may not estimate an allowable
deduction for petitioner’s claimed computer expense.
10 Petitioner testified that he paid this amount to his
return preparer for 2003. The record does not indicate why
petitioner included the accounting fees expense with his
unreimbursed employee business expenses on line 20 of Schedule A,
Itemized Deductions, rather than on line 21, which is labeled Tax
Preparation Fees.
11 Petitioner’s 2003 return includes the name of
petitioner’s return preparer, as well as the preparer’s Social
Security number or paid preparer tax identification number, the
name and address of the firm petitioner used, JD Tax Accounting
Services, and the phone number and employer identification number
of that firm.
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Last modified: March 27, 2008