Magdy S. Ellabban - Page 6

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               1.   Telephone Expenses, Rent, Taxes, and Unemployment                 
                    Insurance                                                         
               Petitioner contends in his posttrial brief that he paid more           
          than respondent allowed for business expenses as follows:  $600             
          for telephone expenses; $24,000 for rent; $950 for New York State           
          tax; $3,000 for Federal tax; and $500 for unemployment insurance.           
          Petitioner did not testify or offer any other evidence that he              
          paid these amounts, and so he failed to meet his burden of                  
          proving he is entitled to deduct them.                                      
               2.   Gas, Tolls, and Parking                                           
               Petitioner contends that he spent more than respondent                 
          allowed as follows:  $1,300 for gas, $1,250 for tolls, and $2,660           
          for business parking.  We disagree.                                         
               A taxpayer may not deduct car and truck expenses unless he             
          or she substantiates by adequate records or sufficient evidence             
          corroborating the taxpayer’s own statement the amount, time and             
          place, and business purpose of the expense.  Sec. 274(d)(4).                
               Petitioner calculated the $1,300 for gas expenses by                   
          multiplying his estimate that he used his car 5,000 miles per               
          year for business by 26 cents per mile.  He estimated that his              
          toll expenses were $5 per day.  Respondent concedes that                    
          petitioner spent $1,759 for parking expenses, and that $1,329 of            
          that amount was for business.  Respondent included this $1,329 in           
          the $26,134 amount that respondent allowed for Elan expenses.               
          Petitioner testified generally about his parking expenses but               




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