8
"business expenses" include his annual rent for his one-bedroom
apartment at the Desert Club, complete with clubhouse, theatre,
and meeting facilities (rental of business property), the entire
phone, cable, and utilities bills every month (utilities), the
cost of his dental work (employee benefit program), numerous
meals at local restaurants (meals and entertainment), auto
insurance and maintenance costs on his only vehicle (insurance
and car and truck expenses), and the entire cost, including
lodging, of his trip to Alaska (travel).
With respect to his trip to Alaska, petitioner claimed that
the initial payment on the house in Juneau was an "investment" in
a lease with an option to purchase, and he intended to renovate
the property for resale. However, the documentation produced by
petitioner clearly indicates that the property was to be used
solely for residential purposes. The lease included no option to
purchase and prohibited any alteration or renovation.
It is well settled that we are not required to accept self-
serving testimony in the absence of corroborating evidence.
Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989),
affg. T.C. Memo. 1987-295; Niedringhaus v. Commissioner, 99 T.C.
202, 212 (1992). Based on the foregoing, we conclude that
petitioner's activities were not engaged in for profit.
Petitioner is not entitled to deduct the Schedule C expenses he
claimed for 1991.
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