Boyd v. Comm'r
United States Tax Court
Ps are shareholders in C, a trucking company formed pursuant to sec. 1361, I.R.C. C compensates its drivers at a rate of 25 to 32 cents per mile. C also provides a per diem allowance of 9 cents per mile. Ps deducted 80 percent of the per diem allowance paid to the drivers. At trial, Ps presented evidence as to the estimated, nonmeal travel expenses incurred by C's drivers.
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Ps are shareholders in C, a trucking company formed pursuant to sec. 1361, I.R.C. C compensates its drivers at a rate of 25 to 32 cents per mile. C also provides a per diem allowance of 9 cents per mile. Ps deducted 80 percent of the per diem allowance paid to the drivers. At trial, Ps presented evidence as to the estimated, nonmeal travel expenses incurred by C's drivers. C's drivers testified as to the average amount of their per diem allowance that they spent on items such as lodging, truck parking, showers, laundry, and Federal Express charges. Held: Despite the presentation of evidence…
1Opinion of the Court
Vasquez, Judge:
Respondent disallowed deductions of $836,7292 for the taxable year ending December 31, 1995; $828,067 for the taxable year ending December 31, 1996; $198,462 for the taxable year ending March 31, 1997; and $1,048,686 for the taxable year ending December 31, 1997, claimed by Continental Express, Inc. (Continental or the corporation), an S corporation in which petitioners are shareholders. At issue is the amount that petitioners may deduct with respect to per diem allowances Continental provided to its drivers, and, particularly, whether the 50-percent limitation of section…
2Cases cited12 opinions
- United States v. Mead Corp.Supreme Court of the United States · 2001
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- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
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- William F. Sanford v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1969
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