DuvallWheeler, LLP


2017 – 08/07

Nail down the details. Generally, taxpayers can deduct “ordinary and necessary” expenses incurred in the course of a trade or business, if they prove the expenses. One taxpayer ran a courier corporation and also delivered packages as an independent contractor. The U.S. Tax Court denied deductions for vehicle-related expenses for his independent contractor work, because the invoices didn’t show which vehicles were worked on or whether they were paid. Some invoices appeared to be mere estimates, and some listed his corporation as the customer. (TC Memo 2017-149)