- 17 -
4. Office Expenses
Petitioners deducted office expenses of $3,091 for 1999 and
$15,109 for 2000 on the Schedules C for petitioner’s consulting
activity. Of the $3,091 claimed for 1999, petitioner testified
he may deduct $1,037.16 that he paid to the local cable
television company as an office expense because he watched
advertisements on cable television to evaluate whether his
clients could effectively use that medium to advertise.
Petitioner conceded that he and his family watched cable
television for personal pleasure.
Petitioners contend that they may deduct $2,054 in 1999 for
the purchase of a second computer in addition to the one
mentioned above. There is no documentary evidence showing how
much petitioners paid for the second computer.
Petitioners contend that they may deduct $15,109 for 2000
consisting of payments for cable television, $7,500 allegedly
paid to Special Friends, and other unspecified expenses. We
disagree. Petitioners have not shown that they paid these
amounts or that these amounts were for office expenses related to
petitioner’s consulting activity. We conclude that petitioners
may not deduct any office expenses for the years in issue.
5. Travel, Meals, and Entertainment Expenses
Petitioners deducted expenses for travel of $2,196 for 1999,
$9,823 for 2000, and $2,500 for 2001 on the Schedules C for
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011