Keith F. Marason - Page 10

                                        - 10 -                                        
               Per exam                  1,184     2,246     1,953                    
               Adjustment                  697     6,832     2,875                    
               A $697 claimed deduction for 1988, which respondent                    
          disallowed, was for halogen lighting in petitioner's apartment.             
          The $697 was an unallowable personal expense under section 262.             
               In 1989, petitioner purchased shelving, file cabinets, and a           
          drop-leaf desk from Performance Audio for use in his apartment.             
          These purchases represent personal items that are nondeductible             
          under section 262.                                                          
               In the same year, petitioner bought from House of Music and            
          sought to deduct merchandise costing $5,477.30.  Petitioner                 
          concedes this item on brief.                                                
               In 1990, petitioner purchased for use in his home two items            
          from the World of Sound, described on the invoice as "THE                   
          AUDIO/VIDEO SPECIALISTS", costing $565.78 and $2,309,                       
          respectively.  In his brief petitioner concedes $941 previously             
          claimed as office expense for 1990.  He has failed to establish             
          that the items purchased were for business use, and not for                 
          personal use.  Respondent's disallowance of these items is                  
          sustained.                                                                  
                                    b.  Supplies                                      
               Respondent made the following adjustments to petitioner's              
          claimed Schedule C "supplies" expenses:                                     








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