John Edward Kerrigan and Joan Marie Kerrigan - Page 12

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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