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expense precludes him from claiming a Schedule C deduction
relating to the computer. As respondent concedes that
petitioners have substantiated their business expenses, we do not
disturb the total amount respondent allowed as a computer
deduction on Schedule A.
While we do not agree with the amounts determined for the
remaining expenses that petitioner alleges should be reported on
Schedule C, we find that the remaining expenses from above do
relate to the L.A. Models Inc. job. These remaining expenses are
allocated based on 1.95 percent of the total amount claimed for
these expenses on petitioners’ original Schedule A, rounded to
the nearest dollar. A description of the expense related to the
L.A. Models Inc. job, the total amount claimed on the original
Schedule A for that expense, and the prorated amount that is
allowed on Schedule C is as follows:
As Reported Prorated
on Schedule A Amount
Pictures $4,021.00 $78.00
Directories 318.00 6.00
Education 1,400.00 27.00
Dues 160.00 3.00
Phone 710.00 14.00
Supplies 180.00 4.00
Ent., publicity &
networking 6,657.00 130.00
Total expenses $13,446.00 $262.00
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Last modified: May 25, 2011