Scott Owen Schubert & Amy K. Moore - Page 10
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nature of their appointments. The category designated as
“purpose” merely states “Appts”. Mr. Schubert attempted to
explain his cursory reconstruction by stating: “it was tough
enough doing the odometers * * * [and I] went back to doing the
summary”. The Court finds that petitioners have not satisfied
the strict substantiation requirements of section 274(d).
Accordingly, respondent’s determination is sustained.5
III. Deduction for Tax Preparation Materials
A taxpayer may be allowed a deduction for ordinary and
necessary expenses paid or incurred during the taxable year in
connection with the determination, collection, or refund of any
tax subject to the 2-percent floor of section 67(a). See secs.
67(a) and (b), 212(3); see also supra note 3.
In order to have a deductible amount, petitioners’ aggregate
miscellaneous itemized deductions must exceed $1,436.72 ($71,836
(AGI) x 2 percent). After the disallowance of the unreimbursed
employee expenses, petitioners’ sole miscellaneous itemized
deduction is the $75 for tax preparation materials. Petitioners’
$75 miscellaneous itemized deduction does not exceed the 2-
5 Even if the Court were to find that petitioners had
substantiated their deductions for unreimbursed employee
expenses, the Court would nevertheless disallow the deductions
because petitioners failed to show that their employers did not
have a reimbursement policy. See, e.g., Boltinghouse v.
Commissioner, T.C. Memo. 2007-324.
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Last modified: March 27, 2008