- 9 - Safeway (a grocery store) or Britches (a clothing store), rather than to the daughters themselves. In addition, Mrs. Kerrigan failed to record these checks in her business log or to provide her children with Forms W-2 or 1099. Petitioners have failed to substantiate any deductions in excess of the amount already allowed by respondent. Depreciation Petitioners also claimed a deduction on Mrs. Kerrigan's Schedule C for depreciation in the amount of $5,030. Respondent allowed $2,386. Petitioners on brief again argue that they are entitled to a larger depreciation deduction than they originally claimed. Mrs. Kerrigan claimed a depreciation deduction for three items: Her 1985 Oldsmobile Toronado, her "office" in petitioners' house in Potomac, Maryland, and a condominium that petitioners owned in Ocean City, Maryland, which Mrs. Kerrigan allegedly used as an office. We find several difficulties with Mrs. Kerrigan's depreciation deduction. First, petitioners have not offered sufficient evidence of Mrs. Kerrigan's cost basis in the Toronado. Second, we repeat our inability to understand how Mrs. Kerrigan arrived at a figure of "96 percent business use" for the vehicle. Thus, we have no way of knowing if this is a proper allocation between business and personal use. In addition, petitioners have failed to provide us with any evidence of Mrs. Kerrigan's cost basis in petitioners' house in Potomac.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011