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deducted expenditures related to the condominium in excess of 10
percent.
Service also deducted $2,101, $2,178, and $5,018, and
respondent disallowed $1,284, $1,362, and $3,403 for 1982, 1983,
and 1984, respectively. These deductions were for utilities,
trash removal, pest control, telephone, etc. The largest portion
of these amounts was attributable to telephone expenses.
Service made the following expenditures, which were deducted in
the tax year paid and were disallowed by respondent as being
without a business purpose:
Date Payee Amount
05/19/82 Baby Safety Industries $225
10/03/82 Dicker & Dicker of Beverly Hills 1,915
11/08/83 Dicker & Dicker of Beverly Hills 115,020
1 Only $14,154 of this amount was included in Service's cost
of goods sold.
Four different styles of mink coats had been purchased from
Dicker & Dicker of Beverly Hills, a furrier. Some of the fur
coats were used by Great for business purposes; however,
petitioners have failed to show that the coats purchased during
1982 or 1983 were used for business purposes. A "Wanda chair"
had been purchased from Baby Safety Industries to be given, as
a gift, to the owner of a company from which Service was to
obtain technology for its computer operations.
Service leased a Mercedes-Benz automobile, paying $915 per
month. During 1983 and 1984, Service deducted, and respondent
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