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an addition to tax under section 6651 in the amount of $1,866.
Petitioner resided in Auburn, California, when he timely filed
his petition.
Following a concession,2 the issues are whether petitioner
(1) may deduct certain "away from home" and car and truck
expenses as trade or business expenses, (2) may deduct on
Schedule C certain "draws" paid to him by his business, (3) may
deduct health insurance premiums on Schedule C, and (4) is liable
for an addition to tax under section 6651 for filing his return
late.
The facts may be summarized as follows. Petitioner operated
a machine shop, Kirsch Machine Shop, as a sole proprietorship in
Santa Clara, California, from 1968 until 1990. In 1988
petitioner sold his home in the Santa Clara area and moved his
family to Auburn, California--approximately 140 miles away from
the machine shop. The reason for the move was that the quality
of life was thought to be better in Auburn.
During 1989, petitioner spent weeknights in motels in Santa
Clara and drove back to Auburn on weekends. Petitioner also
performed an unspecified amount of driving for his business
during the week. Petitioner withdrew $28,175 from his machine
shop business during 1989 to provide himself a salary (draw), and
paid $3,937 for health insurance in that year.
2 Respondent concedes that petitioner is entitled to use the
filing status of married filing separately.
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