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total for these items was $3,617.01.4 Petitioners' daughters
testified that Mrs. Kerrigan frequently purchased such items in
the course of her business. The expenditures reflected in the
log are reasonable considering Mrs. Kerrigan's position as a
successful realtor specializing in the sale of expensive houses.
We hold that petitioners are entitled to deduct $3,617.01 for
Mrs. Kerrigan's advertising expenses.
Car and Truck Expenses
Mrs. Kerrigan claimed a Schedule C deduction for car and
truck expenses in the amount of $2,838.50. Of this amount,
respondent allowed $2,055. On brief, petitioners argue that they
are actually entitled to a greater deduction than originally
claimed.
Petitioners argue that Mrs. Kerrigan incurred gasoline and
insurance expenses of $3,093.12 on her 1985 Oldsmobile Toronado.
In arriving at this figure, it appears that petitioners counted
certain expenditures from Mrs. Kerrigan's log twice. The log
indicates that Mrs. Kerrigan's total business expenses for the
Toronado in 1985 were $2,477. Yet, when calculating their
expenses on brief, petitioners add to this figure the amounts of
$238 and $507. However, these expenses had already been taken
4Mrs. Kerrigan had expenditures of $2,035.04 for signs,
$1,195.27 for items for open houses, and $386.70 for business
"gifts".
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