- 10 -
"other" expenses was interest of $3,255.29 paid on a home equity
loan. Petitioner testified that the loan proceeds from this loan
were used in his business, but he provided no supporting
documents to establish this. We also find it curious that a
deduction for $3,255.29 of alleged business interest would be
buried in a $20,110.29 business deduction classified as "other"
when the Schedule C provides a specific line for interest
deductions. In any event, based on the record before us,
petitioners have failed to prove entitlement to a business
deduction for interest.6
Issue 3. Education Expenses on Schedule C for ENT
On the Schedule C for ENT, petitioners deducted expenses of
over $135,000. Respondent has disallowed $8,951 of those
Schedule C deductions.
Petitioners claimed a deduction for education expenses on
the Schedule C for ENT in the amount of $8,951. Petitioner
testified that $5,000 of this amount was attributable to the cost
of a training seminar for Jon Palmieri, an ENT employee.
Petitioners produced a canceled check to "The Estate Plan" that
indicates it was for training for Mr. Palmieri. The "Profit and
Loss" statement for ENT for the year ended December 31, 1990,
6Petitioners presumably could have elected to deduct this
interest as an itemized deduction. Instead, they elected to use
the standard deduction.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011