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expenses include $1 for bridge tolls, $5 for a notary fee, $5.24
for paper plates, $14 for babysitting, and $7.781 for 2 mileage
expenses. Mr. Frank testified that he spent these amounts in
connection with the living trust activity. Petitioners have not
shown that the babysitting expense was an ordinary and necessary
business expense. See sec. 162. We hold that petitioners may
deduct all of the above stated items, except the babysitting
expense.
Petitioners introduced a form dated December 19, 1991, which
showed that Mr. Frank drove 640 miles to Oregon to discuss estate
planning issues with his brother, Earl W. Frank. Petitioners
have not shown that the primary purpose of the trip was business
related and may not take a deduction for the 640 miles.
Petitioners' evidence shows that they conducted the living
trust activity before May 1991, but does not show that they
conducted the activity to the same extent during and after May
1991. Petitioners reported $125 in gross income from the living
trust activity on their 1991 tax return. Most of petitioners'
receipts show expenses incurred before May 1991, some of which
respondent conceded. Petitioners have not shown that they may
deduct mileage expenses for the living trust activity from May to
December 1991 in excess of amounts previously allowed and
discussed above.
1 Petitioners' mileage deduction was computed by applying
the standard mileage rate to 28.3 miles.
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