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Laundry and Cleaning Expenses
Respondent disallowed Schedule C deductions for cleaning
expenses by Mrs. Kerrigan and Mr. Kerrigan in the respective
amounts of $1,107 and $618.55. None of these expenses appear to
be recorded in Mrs. Kerrigan's business log. While petitioners
produced canceled checks totaling $660.25 payable to "Crest" or
"Crest Cleaners", they failed to demonstrate the business purpose
for these checks. Accordingly, we sustain respondent's
determination.
Office Expenses
Mrs. Kerrigan and Mr. Kerrigan claimed a Schedule C
deduction for office expenses in the respective amounts of
$4,409.15 and $3,715.89. Respondent allowed $1,067 and $886,
respectively. While petitioners offered no evidence to
substantiate Mr. Kerrigan's deduction, they did present several
entries from Mrs. Kerrigan's log in an attempt to substantiate
her deduction. Some of these expenditures, however, do not
appear to be within the realm of office expenses. Some of the
expenses include lawn care and house painting for house
settlements. Petitioners have failed to substantiate deductions
for office expenses in addition to the amounts already allowed by
respondent.
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Last modified: May 25, 2011