For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
By Erin McManus
Aug. 9 — A college professor and his librarian wife couldn't deduct as employee business expenses internet, cellular telephone, computer and satellite television expenses ( Tanzi v. Commissioner , T.C., No. 13603-14, T.C. Memo. 2016-148, 8/9/16 ).
U.S. Tax Court Judge Juan Vasquez ruled Aug. 9 that the expenses claimed by Lawrence and Patsy Jean Tanzi weren't “ordinary and necessary for the trades of being a professor or a campus librarian but rather” were personal, living or family expenses.
Vasquez said the Tanzis didn't show the amount of business use of computer equipment relative to the total or provide any evidence regarding its depreciation. The Tanzis also failed to show the portion of cell phone use that was business or the portion of internet service that Patsy used while working from home.
The court found that Lawrence's internet use, the couple's expenditures for a professional library of DVDs, CDs and books, and their DirecTV subscription were in the nature of personal expenses. The Tanzis' argued that the expenses were “ordinary and necessary to their trades because they must constantly expand their ‘general knowledge' to be effective at their jobs,” Vasquez said.
To contact the reporter on this story: Erin McManus in Washington at email@example.com
To contact the editor responsible for this story: Cheryl Saenz at firstname.lastname@example.org
Text of the decision is in TaxCore.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)