- 20 - 9. Other Expenses Petitioners deducted miscellaneous expenses of $4,240 for 1999, $3,431 for 2000, and $3,360 for 2001 on the Schedules C for petitioner’s consulting activity. These amounts include payment for telephone service. Respondent concedes that petitioners paid $3,101.61 for telephone service in 1999 but contends that petitioners may not deduct any of this amount. We agree because petitioners provided no basis to allocate between business and personal telephone use. See sec. 262(b) (charge for basic telephone service to a residence is deemed personal). Petitioners contend that they may deduct payments for computer printing supplies. We disagree because there is no evidence showing how much petitioners paid for computer printing supplies. Respondent concedes that petitioners paid and may deduct $285.35 for Internet service in 2000. Petitioners deducted for 2000 insurance expense of $955, rent or lease payments of $3,720, and repairs and maintenance of $1,256. Respondent contends that petitioners may not deduct any of these amounts. We agree because there is no evidence substantiating these deductions. We conclude that petitioners may not deduct more miscellaneous expenses on the Schedules C than allowed by respondent.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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