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(4) Taxes
Petitioners deducted $11,686 for taxes on Schedule C for the
business. Of that amount $6,150.72 was duplicated. Of the
remaining amount of taxes deducted, $2,540 was attributable to
sales taxes paid by petitioner in his Schedule C business which
are deductible in full on Schedule C, and $2,994 was attributable
to real property taxes paid by petitioners on their personal
residence. On their Schedule A, petitioners deducted real estate
taxes paid on their personal residence in the amount of $2,452.
Since petitioners used the residence 50 percent for business,
$1,497 is deductible on Schedule C and the remaining $1,497 is
deductible on Schedule A, instead of the $2,452 claimed by
petitioners on Schedule A.
(5) Interest
On Schedule C for the business, petitioner deducted $2,729
for interest. Interest of $1,864.75 paid to Midatlantic Bank was
attributable to the mortgage on petitioners' personal residence.
Because the residence was used 50 percent for business, only
$932.38 is deductible on Schedule C. The remaining $932.37 is
deductible on Schedule A as an itemized deduction.
C. Depreciation
Petitioners claimed depreciation deductions in the total
amount of $22,476 for 1990. This amount included depreciation
for a Chevrolet van, a Chevrolet Cavalier, and the Wyoming
locksmith shop. The amount of $6,136.38 was correctly
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