- 57 -
C. Other Expenses
As tables 3 and 4, supra, show, (1) petitioner reported
Schedule C gross receipts of $1,095 for 1983, $1,000 for 1984,
$13,488 for 1985, and $3,565 for 1986, and (2) at respondent's
urging we have concluded that petitioner had $94,713 Schedule C
gross receipts for 1982. Thus, setting aside 1984 (see supra note
16), respondent takes the position that petitioner managed to earn
a total of $112,793 in his Schedule C activities without even $1
of deductible expenses. We recognize that some expenditures of a
trade or business are not currently deductible for one or more of
several reasons; e.g., they are to be capitalized, or they are not
ordinarily incurred in such a trade or business, or some provision
of law forbids the deduction. Respondent has not suggested that
any such bar to deduction of otherwise-substantiated expenditures
applies in the instant case. We conclude that petitioner incurred
and paid something in each of the years in issue in order to earn
the law practice Schedule C income with which we charge him. See
18(...continued)
views of whether he was in any trade or business and therefore
whether he could deduct any expenses of a trade or business might
well be affected by his identification of his specific activities
in any claimed trade or business and how much income he reported
from that trade or business. Petitioner responded that "I would
submit that we can deal with this in the briefing matter."
Petitioner failed to so deal with this, and so we deem him to
have conceded the question of whether he was in any trade or
business other than his law practice and Hall Farms. See
Sundstrand Corp. v. Commissioner, 96 T.C. 226, 344 (1991); Money
v. Commissioner, 89 T.C. 46, 48 (1987).
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