- 6 - Net Profit (13,368) 2,298 (13,023) 6,1501 (4,607) 4,995 Pre-Pals 1 No explanation was given for the mathematical discrepancy. Respondent's auditor reduced/disallowed the amounts claimed by petitioners primarily on the basis of failure to substantiate. In some instances, the amount was reduced/disallowed on the basis that either the expenditures involved were personal in nature or petitioners failed to indicate the reason the expenditures were claimed. Miscellaneous Employee Business Expenses For each of the years under consideration, petitioners claimed a deduction for miscellaneous employee business expenses on Schedule A of their tax returns. The following table shows the items of expenses claimed by petitioners, and the amounts allowed by respondent, for each of the years under consideration: 1989 1990 1991 Reported Allowed Reported Allowed Reported Allowed Auto $ 7,020 0 $ 7,020 0 $ 7,020 0 Other asset-- 119 $ 775 6,015 $ 1,632 43 $ 1,459 depreciation Office expenses 8,252 0 18,922 0 0 0 Promotion 1,962 0 0 0 0 0 Storage and rent 18,400 0 18,340 0 18,340 0 Equipment 8,000 0 0 0 0 0 Conferences 13,764 0 10,349 0 0 0 Legal & accounting 16,610 19,916 2,665 4,080 39,281 27,980 Advertising pamphlet 6,750 6,750 0 0 0 0 Tax return prep. 689 639 0 0 0 685 Dues & pubs. 0 0 2,567 0 840 0 Maintenance 0 0 3,668 0 4,026 1,461 Education 0 0 0 0 6,257 0 Leasehold impr. 0 0 12,500 19,616 12,500 19,287 Moving 0 0 0 0 2,212 0 Total 81,566 28,080 82,046 25,328 90,519 50,872Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011