John Edward Kerrigan and Joan Marie Kerrigan - Page 8

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            into account in arriving at the initial figure of $2,477.                                  
            Petitioners argue that Mrs. Kerrigan used the Toronado for                                 
            business purposes 96 percent of the time.  Exactly how this                                
            figure was arrived at, one can only speculate.  Petitioners also                           
            contend that they are entitled to a mileage deduction for Mrs.                             
            Kerrigan's use of a 1980 Mercedes 350 SL.  No deduction for this                           
            appears to have been claimed on their return.  However,                                    
            petitioners do not explain why this mileage was not claimed on                             
            their return, nor have they offered any evidence to prove what,                            
            if any, use of the Mercedes was attributable to business.                                  
            Petitioners have not established an entitlement to deductions in                           
            excess of the amount allowed by respondent.  Accordingly, we                               
            sustain respondent's disallowance.                                                         

            Commission Expenses                                                                        

                  Petitioners claimed a Schedule C deduction of $6,412.33 for                          
            commissions paid by Mrs. Kerrigan in connection with the sale of                           
            real estate in 1985.  Respondent allowed a deduction of $3,927.                            
            Petitioners attempted to prove that the additional commissions                             
            were paid to their daughters.  The testimony of the daughters was                          
            vague as to how these "commissions" were computed, as well as to                           
            their amounts.  Moreover, Mr. Kerrigan observed at trial that his                          
            daughters appeared to "overstate" the amount of their                                      
            commissions.  Interestingly, the checks that petitioners offered                           
            to substantiate these "commissions" were made payable to either                            




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