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counseling ministry. Accordingly, we sustain respondent's
determination with respect to the deductions for utilities and
depreciation for the taxable years 1988, 1989, and 1990.
Telephone Expenses for 1988 and 1990
For the taxable year 1988 petitioners deducted "telephone
and utility" expenses in the amount of $6,117. Respondent
disallowed $2,141 of the deduction. For the taxable year 1990
petitioners deducted telephone expenses in the amount of $3,325.
Respondent disallowed $898 of this amount.
The telephone expenses deducted by petitioner for the
taxable years 1988 and 1990 included expenses for the office
phone in the downtown office, the Yellow Pages advertising, the
charges for call forwarding from the business location to the
personal residence, and business related, long distance calls
made from petitioners' home. Respondent disallowed the portion
of the telephone expenses attributable to petitioners' home
office.
Respondent, on brief, contends that petitioners failed to
substantiate the telephone expenses, and further, that even if
they did so, the expenses are not allowable pursuant to section
280A(a) and Commissioner v. Soliman, supra. We are persuaded
that petitioner incurred some telephone expenses at home in the
course of conducting his trade or business as a counselor.
Additionally, respondent's reliance on section 280A(a) is
misplaced. The deductibility of telephone expenses is guided by
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