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expenses, is subject to the strict substantiation requirements of
section 274. Sec. 274(d)(2). Petitioner submitted receipts for
restaurant meals which show the dates and amounts of the meals
but not the business purpose of the meals or the business
relationship to petitioner of persons with whom he shared the
meals. See sec. 274(d) (flush language); sec. 1.274-5T(b),
Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
Petitioner’s testimony in this regard was vague and unconvincing,
and the record does not meet the statutory requirements for
substantiation, even if the claimed expense might be allowable if
incurred while away from home in pursuit of a trade or business.
The claimed deduction for meals represents a personal expense and
is not allowable. See sec. 1.262-1(b)(5), Income Tax Regs.
Petitioner deducted the trading costs he incurred in
purchasing and selling securities held in his Roth IRA.
Petitioner does not claim to be a dealer in securities, nor does
he point to any statutory provision that might justify treating
his trading costs other than in the usual manner, as additions
to, or subtractions from, his basis for purposes of computing
gain or loss on sale. See sec. 1221; Woodward v. Commissioner,
397 U.S. 572, 575 (1970); sec. 1.263(a)-2(e), Income Tax Regs.
These trading costs are not deductible.
In his amended return, petitioner sought to deduct $16,561
under section 179 with respect to the business use of a motor
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Last modified: November 10, 2007