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was deducted for insurance. Of that amount $1,327.26 was
duplicated. The remaining amount of insurance, after subtracting
the duplication, was attributable to insurance on petitioners'
two vehicles, one being used exclusively for the Schedule C
business and the other one being used 56 percent for business
use. The portion of the insurance attributable to the personal
use of one of petitioners' vehicles is not deductible because it
is a nondeductible personal expenditure. Respondent determined
that the portion of the insurance expense attributable to
personal use was $507.10. Petitioners presented no evidence that
respondent's calculation was incorrect. Therefore, respondent is
sustained as to this adjustment.
(3) Car and Truck Expense
On Schedule C petitioners deducted car and truck expenses in
the amount of $8,280 of which $1,076.64 was duplicated and $2,301
was a payment for the lease of a Chevrolet van. The remaining
expenses of $4,902.36 deducted on Schedule C were not allocated
by petitioners between business and personal use, even though one
of the vehicles was used 44 percent for personal use.
Petitioners should have allocated the expenses between business
and personal use. Consequently, they are not entitled to deduct
expenses of $1,078.52, the amount allocated by respondent to
personal use of one of the vehicles.
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