- 16 -
II. Disallowance of Claimed Schedule C Business Expense
Deductions
As previously indicated, petitioners claimed total Schedule
C business expense deductions of $117,871 on their 1990 Federal
income tax return. Of that total amount respondent allowed
$4,026 for repairs, travel, meals and entertainment, and
$69,085.91 with respect to the other claimed expenses.
Respondent disallowed $44,759.09, i.e., $32,888.92 of duplicated
expenses and the remainder attributable to nondeductible personal
expenses, incorrect depreciation, a moving expense, or the
incorrect basis used to compute a loss on an automobile.
A. Duplicated Expenses
In addition to the expenses claimed for repairs, travel,
meals and entertainment, petitioner claimed the following
expenses on Schedule C relating to his locksmith business:
Expense Amount Claimed
Advertising $2,739
Car and truck 8,280
Depreciation 22,476
Insurance 3,632
Interest 2,729
Legal and prof. 9,468
Moving 1,254
Office expense 10,101
Other expense 5,876
Rent 3,675
Supplies 22,830
Taxes 11,686
Utilities 9,099
Total $113,845
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011