Jozsef and Zsuzsanna Balla - Page 15




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          reimbursement program for mariner continuing education that                 
          covered tuition, hotel, and meal expenses for mariner continuing            
          education courses, but not for travel expenses.                             
               On the Sailor Travel Statement attached to petitioners’                
          return for 2002, petitioners explained that the purpose of                  
          petitioner’s trip to Fort Lauderdale was to attend a continuing             
          education program, the tuition for which was paid by petitioner’s           
          union.  At trial, petitioner testified that he attended a                   
          firefighting school with colleagues.  Although given the                    
          opportunity, respondent did not question petitioner regarding the           
          business purpose of the Fort Lauderdale trip or the business                
          benefit that petitioner hoped to derive from his attendance at              
          the firefighting school.  Respondent’s only question on                     
          cross-examination regarding the Fort Lauderdale trip was whether            
          petitioner kept a mileage log to substantiate the miles traveled            
          on that trip.  Petitioner answered in the negative.                         
               We hold that petitioner has adequately substantiated the               
          business purpose of his travel expenses related to the Fort                 
          Lauderdale trip for firefighting school.  Firefighting is related           
          to petitioner’s employment as a merchant sailor and engineer.               
          Payment for the course by petitioner’s professional union                   
          supports petitioners’ characterization of the related travel                
          expenses as ordinary business expenses.  We are not persuaded by            
          respondent’s argument that, because petitioner did not seek                 







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