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Petitioners have not shown that these alleged advertising
expenses were not included in amounts already allowed for
advertising. The Schedule C for the Registry shows a separate
deduction for advertising in the amount of $617. Petitioner
also testified that a portion of the expenses for "dues"
consisted of payments to United Cable for cable television.
Petitioner testified that approximately one-third of petitioners'
house was used for business and that the cable television service
was provided for the whole house. Based on this, we are unable
to determine what portion, if any, of the cable television costs
might be applicable to the business of the Registry. Petitioner
also testified that a portion of the expenses for "dues"
consisted of payments for supplies, even though on the Schedule C
for the Registry, petitioners deducted $2,063 for supplies.
Again, petitioners have not shown that these amounts were not
included in the deduction allowed for supplies on Schedule C.
Petitioners have failed to establish their entitlement to the
claimed "dues" deduction.
With respect to the deductions for gifts, petitioners
produced a check for $53, which indicates on its face that it was
for Godiva chocolates. This was recorded on the business records
as a gift, and petitioner testified that it was for a gift to one
of the Registry's customers. We hold that petitioners have
established that the $53 was a deductible business expense.
With respect to $350 claimed as a labor expense, petitioners
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