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Taxes 6,150.72
Utilities 3,138.74
Total $32,888.92
Accordingly, we sustain respondent's disallowance of the
duplicated expenses.
B. Personal Allocation of Expenses
(1) Utilities
During 1990, petitioners utilized 50 percent of their
residence located in New Jersey for personal use and allocated 50
percent of the use to petitioner's Schedule C locksmith business.
On the Schedule C for the business $9,099 was deducted for
utilities. Of that amount $3,138.74 claimed for utilities was
duplicated. Of the remaining amount of utilities deducted,
$1,158.26 was attributable to utilities for petitioners' personal
residence. Because petitioner used the residence 50 percent for
his business, only $579.13 is deductible on Schedule C. The
other $579.13 is a nondeductible personal expenditure. Sec. 262.
Petitioners presented no evidence that respondent's calculation
of the portion of the utilities attributable to personal use was
incorrect. Therefore, respondent is sustained as to this
adjustment.
(2) Insurance
According to petitioners' Federal income tax return,
petitioner used a van 100 percent for business use and a vehicle
56 percent for business use. On Schedule C the amount of $3,632
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