preview

My Client, Tony Martin

Decent Essays
Open Document

My client, Tony Martin, has been employed by Eagle Airlines as a mechanic at its repair facility. He initially worked at the Minneapolis-Saint Paul Airport. However, Eagle Airlines reduced its Minnesota staff, and consequently, eliminated his job in early 2011. Tony utilized his union seniority to acquire a similar job by “bumping” a Chicago mechanic, but Eagle downsized its Chicago operations as well. As a result, a few months later, Tony ended up working in the LaGuardia, New York Airport. Finally, he “bumped” an Anchorage mechanic to conclude with a job in that airport. However, he ran out of seniority and was permanently fired by Eagle Airlines. Tony kept his family and residence in the Minneapolis area throughout his work assignments in New York, Chicago, and Anchorage. Consequently, Tony deducted his entire out-of-town expenses, to include meals and lodging, as work expenses. The issue at hand is to establish if this determination of his expenses as work related was appropriate. Therefore, I must ascertain if Tony’s travel expenses were considered incurred while he was away from home. The Internal Revenue Code Section 162, Trade or Business Expenses, notes that only expenses that are “ordinary and necessary” that are paid or incurred for the taxpayer’s trade or business are deductible. Tony’s expenses for meals and lodging can be considered to be “ordinary and necessary,” but the issue at hand is to determine if these expenses were considered incurred when Tony was

Get Access
Related
Get Access