The petitioner lived in NYC and worked for a business that was headquartered in L.A. The petitioner worked from her apartment at the employer's request, and divided her studio apartment into thirds with one-third used for business. During 2009, the tax year at issue, the petitioner paid for a cleaning service, cable, telephone and internet access, clothing for the employer, and a cell phone for business use. The IRS disallowed all of the associated deductions that were claimed as unreimbursed employee business expenses. However, the Tax Court allowed a deduction for one-third of the petitioner's apartment rent and cleaning service charges. The Tax Court also deductions for telephone and 70 percent of the internet cost. As for electricity charges, the petitioner's records were insufficient to allow a deduction for any amount. Cell phone charges were not deductible due to lack of substantiation required (cell phones were listed property in 2009 and subject to strict substantiation rules which were removed by the SMJA of 2010). The Tax Court did not allow any deduction for clothing expenses because the petitioner admitted that the purchased clothing were also suitable for personal wear. Miller v. Comr., T.C. Sum. Op. 2014-74.
- Ag Docket