Tax Court In Brief | Luna v. Comm'r | Disallowance Of Itemized Business Deductions And Lack Of Substantiation

• Published date: 05 September 2022
• Subject Matter: Tax, Income Tax
• Law Firm: Freeman Law
• Author: Freeman Law

The Tax Court in Brief - August 29th - September 2nd, 2022

Freeman Law's "The Tax Court in Brief" covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation: The Week of August 29th, 2022, through September 2nd, 2022

• Sparta Pink Property, LLC v. Comm'r T.C. Memo. 2022-88 | August 29, 2022 | Lauber, J. | Dkt. No 12114-20
• Pressman v. Comm'r, T.C. Summ. Op 2022-15 | August 29, 2022 | Panuthos, S.T.J. | Dkt. No. 16084-19S
• Domdom v. Comm'r, T.C. Summary Opinion 2022-17 | August 30, 2022 | Carluzzo, J. | Dkt. No 18270-17S
• George Anton Remisovsky and Ellen Jones-Remisovsky v. Comm'r, T.C. Memo. 2022-89| August 30 2022?| Lauber, A. | Dkt. No. 11945-20L

Luna v. Comm'r, T.C. Summ. Op. 2022-18| September 1, 2022 | Carluzzo, Chief SJT | Dkt. No. 17748-18S

Opinion

Short Summary: George Luna (Luna) served as the executive director of a non-profit organization, the Center for Health Justice, Inc. (CHJ). In addition, he served as a board member of E.S.S.E. Mundo Digital (EMD), a Brazilian organization. During 2015, he traveled to various cities in connection with his role as executive director of CHJ. Also during 2015, he traveled to Brazil to meet with other board members of EMD. Luna claimed miscellaneous itemized deductions on his 2015 return related to his travel for CHJ and EMD. He also claimed a deduction for $225 of tax preparation fees. The IRS disallowed all of these miscellaneous itemized deductions in full. Aggrieved, Luna filed a petition with the Tax Court for review of the IRS's determinations.

Key Issues: Whether Luna is entitled to claim miscellaneous itemized deductions for unreimbursed employee business expenses and for tax preparation fees.

Primary Holdings:

• Luna is not entitled to claim miscellaneous itemized deductions for unreimbursed employee business expenses because: (1) he failed to show the connection between the trips and the trade or business (e., his employment); and (2) he failed to show how the trips were "helpful" to his employment position Moreover, with respect to many of the claimed expenses, he has failed to properly substantiate the same under section 274(d).
• Luna is not entitled to claim miscellaneous itemized deductions for his tax preparation fees because, even if the amount he claimed were allowed, the amount would not exceed 2%...