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Petitioners deducted $500 for printer and copier supplies,
repairs, and maintenance. Petitioner does not have any receipts
to substantiate that amount.
Petitioners deducted $1,500 for taxes and licenses, which
respondent disallowed. Respondent allowed petitioner's payments
for licenses as a miscellaneous itemized deduction on Schedule A.
Petitioners deducted $3,567 on Schedule C for travel in 1999
as part of job-hunting expenses. Respondent allowed as a
miscellaneous itemized deduction on Schedule A the $3,355 that
petitioner substantiated.
Petitioners also deducted $1,500 in meal expenses and $5,395
for the business use of their home which respondent disallowed.
Petitioners' claimed deductions exceeded the wages from IIEM
that were reported as gross income on the ARA Schedule C,
resulting in a reported loss of $37,342. Petitioners applied the
reported loss against the $149,615.82 of wage income petitioner
received from Eli Lilly for 1999. Respondent disallowed all the
deductions petitioners claimed on the ARA Schedule C.
b. ATE Consulting Services
The second Schedule C was for ATE Consulting Services
(ATE), which petitioner characterized as a consulting business.
Petitioners reported the $5,000 of teaching wages
petitioner received from the university as gross income on the
ATE Schedule C.
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