Hans H. and Cheryl E. Hammann - Page 14

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          state income tax refund received during the year, explaining that           
          a "refund of any part of your state income tax that you deducted            
          in prior years, and reduced your Federal income tax in those                
          years, is includable in income in the year you receive the                  
          income."  On their 1983 and 1984 Federal income tax returns,                
          petitioners claimed itemized deductions for state income taxes in           
          the amounts of $1,545 and $1,367, respectively.                             
          Journalism Activity                                                         
               On their 1983 return, petitioners claimed a deduction in the           
          amount of $2,381 for travel and entertainment expenses incurred             
          with respect to a journalism activity conducted by Hans Hammann.            
          Respondent disallowed the deduction claimed upon the ground that            
          petitioners did not establish that the expenses were ordinary and           
          necessary or were expended for the business purpose designated.             
          No other evidence is included in the record with respect to this            
          activity.                                                                   
          Charitable Contribution Deduction                                           
               Petitioners claimed $1,959 as a charitable contribution                
          deduction on a Schedule A filed with their 1983 Federal income              
          tax return.  Respondent disallowed the entire deduction for lack            
          of substantiation.  No other evidence is included in the record             
          with respect to this deduction.                                             









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