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129. We sustain respondent's disallowance of the deduction for
child care expenses.
Petitioner testified that $600 of the amount claimed as
employee benefits was a reimbursement to petitioner Kathleen
Turner for travel expenses she incurred as a member of the board
of directors for Crystal Communications, a client of the
Registry. Petitioners produced a $600 check payable to Ms.
Turner. There was no explanation on the check, and petitioners
produced no other documentation showing the nature of the alleged
travel. Petitioners did not explain why this was classified as
an employee benefit rather than a travel expense, nor have they
shown that the $600 expense was not included in the $1,558 of
travel expenses allowed as a deduction on the Schedule C for the
Registry. Petitioners have failed to prove entitlement to the
$600 deduction.
On Schedule C for the Registry, petitioners claimed a
deduction for "other expenses" in the amount of $29,750, which
respondent also disallowed. These "other expenses" included
expenses for bank charges of $1,881, seminars/education of
$5,549, dues of $1,187, business gifts of $53, casual labor of
$350, and "other" in the amount of $20,730.
With respect to the portion of bank charges related to
credit cards, petitioner testified that he used credit cards in
his name for both business and personal affairs. With respect to
bank charges related to an escrow account, petitioner testified
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