Floyd H. Anderson and Pauline Anderson v. United States

Taxpayer seeks to deduct as business expenses under Sec. 162 1 certain automobile and entertainment expenditures incurred during the taxable years 1959 through 1962. 2 The district court directed a verdict in favor of the government. That the expenses were incurred is agreed; the only question is the deductibility of the expenses.

Taxpayer is employed by International Business Machines Corporation as a sales manager for the Houston area. IBM reimburses its employees for automobile expenses incurred while the vehicle is used for purposes it considers related to business. Taxpayer was reimbursed…