Bernard Michael Reed - Page 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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