- 17 -
1995. Of this amount, we find that $5,657.62 was substantiated
from the description of the expense in the business ledger.
Although Mr. Ngo only claimed a repair/maintenance expense of
$315, we find that he is entitled to a deduction of $5,657.62.
Likewise, Mr. Ngo’s business ledger shows a total of
$16,347.87 in repair/maintenance expenses. After review of the
business ledger and notations contained therein, we find that Mr.
Ngo is entitled to a deduction of $14,730.55 for repair/
maintenance expenses in 1996.
In 1997, Mr. Ngo did not claim a repair/maintenance expense
deduction. However, in our review of his legal and professional
fees above, we found that many of the entries were erroneously
categorized as legal and professional fees. Of the misplaced
entries, we find that $3,552.83 was properly recharacterized as
repair/maintenance expenses. Furthermore, after reviewing Mr.
Ngo’s entire business ledger for 1997, we find that he is also
entitled to a deduction for repair/maintenance expenses of
$3,910.67. Accordingly, for 1997 Mr. Ngo is entitled to a total
deduction of $7,473.50 in repair/ maintenance expenses for 1997.
5. Salary/Wages
Mr. Ngo claimed salary/wages deductions of $12,000, $12,000,
and $12,618, respectively, for the years at issue. Respondent
allowed $10,329, $8,465, and $4,618, respectively.
Reasonable compensation for services actually rendered is
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