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$4,565.74, petitioner testified that business was "real slow" and
that petitioners only earned approximately $350 in the 1 week
that petitioners were open for business in the 1994 tax year.
Petitioners did not calculate cost of goods sold or keep an
inventory for the 1994 tax year. Other than testifying that the
restaurant earned $350 for the last week of December, petitioner
did not know how much food, soda, or restaurant supply costs were
actually incurred in the 1994 tax year. In 1995, petitioners
continued to use food, restaurant supplies, and soda that was not
sold or consumed in the 1994 tax year.
On the basis of the record, we find that petitioners
incurred food, restaurant supplies, and soda expenses in the
amount of $556 for the 1994 tax year.
g. Repair and Maintenance Expenses
Petitioners claimed repair and maintenance expense
deductions in the amount of $5,797 on Schedule C of their 1994
Federal income tax return. These deductions represented costs
incurred by petitioners for repair of used equipment purchased
from equipment vendors, and the installation and repair of
plumbing fixtures.
Petitioner could not recall why some of the labor was
performed, and there is nothing in the record to indicate that
petitioners made any attempt to contact service people to
substantiate petitioners' claimed deductions. Furthermore, some
of petitioners' claimed repair and maintenance expenses appear to
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