Craig E. and Debbie A. Brown - Page 15

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          Income Tax Regs.                                                            
               Respondent contends that petitioners are not entitled to               
          the credit because Ruth Mayen provided housekeeping services.               
          According to petitioner's testimony, Ruth Mayen was primarily               
          hired to care for Gabriel and Yulanda, although she did provide             
          housekeeping services. We find that a part of Ruth Mayen's                  
          housekeeping services included the care of Gabriel and Yulanda.             
               Unfortunately, petitioner presented very little                        
          documentation and testimony as to the amounts paid Pacific Coast            
          Preschool, Van Ness Nursery, and Ruth Mayen.5  However, the Court           
          is satisfied that some amount was expended by petitioners for the           
          care of Gabriel, Yulanda, and Miranda. Based on the record and              
          using our best judgment under Cohan v. Commissioner, 39 F.2d 540            
          (2d Cir. 1930), the Court estimates that child care expenses paid           
          by petitioners to Pacific Coast Preschool and Van Ness Nursery              
          were $840 for 1989. Further, the Court estimates that the child             
          care expense paid by petitioners to Ruth Mayen was $2,000 for               
          1989. Thus, petitioners are allowed a child care credit based               
          upon these amounts.                                                         


          Schedule C Activities                                                       


               5    Petitioner did present cancelled checks payable to                
          Pacific Coast in the amount of $198 and Van Ness in the amount of           
          $196.50. In addition, petitioners made statements in their reply            
          brief as to the amount paid to Ruth Mayen for child care                    
          services. However, statements in briefs do not constitute                   
          evidence and will not be considered by the Court.                           




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