Discussion:Campaign expenses as job hunt

Personally, sounds creative, but I can't imagine it being allowed. He's not pushing to do this, he just thought of it and is hopeful that it can be argued to be job hunting expense.

Any thoughts?

REV. RUL. 86-3Rev. Rul. 86-3

I think Rev Ruling 75-120 is a more definitive answer. A snip:

"In view of the above, it is now the position of the Service that expenses incurred in seeking new employment in the SAME trade or business are deductible under section 162 of the Code if directly connected with such trade or business as determined by all the objective facts and circumstances.

However, such expenses are NOT deductible if an individual is seeking employment in a NEW trade or business even if employment is secured. If the individual is presently unemployed, his trade or business would consist of the services previously performed for his past employer if no substantial lack of continuity occurred between the time of the past employment and the seeking of the new employment. Such expenses are not deductible by an individual where there is a substantial lack of continuity between the time of his past employment and the seeking of the new employment, or by an individual seeking employment for the first time. Such expenses are not deductible under section 212(1) of the Code which applies only to expenses incurred with respect to an existing profit-seeking endeavor not qualifying as a trade or business.

Nichols v. Commissioner, 60 T.C. 236

Discussion about:

"We are again confronted with the question of the extent to which campaign expenditures constitute an allowable deduction for income tax purposes under the principles laid down in McDonald v. Commissioner, 323 U.S. 57 (1944). We recently faced this question, in terms of the applicability of sections 162 and 212, and disallowed the deduction in James B. Carey, 56 T.C. 477 (1971), affirmed per curiam 460 F.2d 1259 (C.A. 4, 1972). In this case, there is the further complicating factor that petitioner claims that the filing fee in question is deductible as a State tax under section 164 even if the deduction is not available under section 162 or section 212."

The last time I did research this question, all I can remember is that the office must be a fee based office and the candiate must be running for re-election.

thanks all. mucho appreciated.