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rendering services to Ro-Tile. Petitioner also used the truck
"to do a lot of hauling out to the ranch" in connection with his
real estate partnership activity. He did, in addition, "some
computer work" for his real estate partner "Doc" Bakos.
Petitioners' daughter was enrolled at the University of the
Pacific, near but south of Lodi in Stockton, California.
Stockton is near enough to Lodi that a telephone call from one
town to the other is a local call. Petitioner, from time to
time, visited his daughter in Stockton when driving the truck to
or from a Ro-Tile trip.
Petitioners, on Schedule C of their 1994 Federal income tax
return, claimed "utilities" expenses that were actually telephone
expenses of $1,137.31, and car and truck expenses of $13,049.
Using the optional standard mileage rate, petitioners'
claimed car and truck expenses were based upon 100 percent
business use of the truck for a total of 34,748 miles, and 48.31
percent business use of the Lincoln for 7,289 business miles.
Petitioners also included, in their claimed car and truck
expenses, small amounts for parking fees, tolls, property taxes,
and interest.
After examining their return, respondent determined that
petitioners are not entitled to claim as business expenses either
their telephone expenses, because they are personal expenses, or
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