- 3 - Petitioner received a B.A. degree in history from California State University at Sacramento. He has written five unpublished novels, including: Great Woods Poppy; Trappers; Forever Three Friday; Positively People; and Atla One, the first of a trilogy. With respect to his activities as a "self-employed writer/editor/educator", petitioner reported income and claimed expenses on Schedules C as follows:3 Expenses 1990 1991 1992 Car and truck expenses $4,187 $5,633 $10,228 Insurance 2,549 2,917 2,597 Legal and professional services 139 100 545 Office expense 157 1,498 1,647 Vehicle lease 2,621 2,639 2,658 Lease of other business property 3,222 2,925 3,130 Repairs and maintenance 48 582 629 Taxes and licenses 445 535 527 Travel, meals, and entertainment 1,892 738 1,833 Utilities 1,393 2,263 1,702 Postage 75 151 211 Research 9,455 10,237 4,366 Writing experimentation 67 255 171 Telephone 784 910 804 Total expenses 27,034 31,383 31,048 Gross income 2,356 11,421 3,419 Net income/loss (24,678) (29,962) (27,629) 1 Petitioner now concedes that this amount constituted gambling income, unrelated to his writing activities. See supra note 2. 3 The items and amounts listed are taken from petitioner's amended returns (Forms 1040X) for the years 1990, 1991, and 1992. On the amended returns, petitioner claimed larger deductions than claimed on his original returns. The notice of deficiency specifically disallows the amounts claimed on both the original and the amended returns.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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