Marcus Wayne and Judity Caroline Ramsey - Page 16

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               2.  Car Expenses                                                       
                    a.  Operating Costs                                               
               Petitioners deducted $6,2018 as automobile operating expenses.         
          Although petitioners provided numerous receipts to substantiate             
          this deduction, the receipts do not connect the claimed expenses to         
          the use of the Cadillac, the only car petitioner used for business          
          purposes.  Moreover, some of the claimed expenses are clearly not           
          related to the use of any automobile.  Having reviewed and                  
          considered petitioners’ documentation, we hold that petitioners are         
          not entitled to a deduction for any of the claimed $6,201                   
          automobile expenses.                                                        
                    b.  Interest                                                      
               Petitioners deducted $1,660 as an interest expense.  They              
          presented evidence that they incurred this expense with regard to           
          the Cadillac.  Because the parties have stipulated that petitioner          
          used the Cadillac 82 percent of the time for business use, we allow         




               8    The claimed operating expenses all related to the                 
          Cadillac and were composed of the following:                                
               Insurance                     $849.54                                  
               Operating costs              3,818.13                                  
               Repairs                      1,310.08                                  
               Visa and Discover charges    1,584.68                                  
          Total                       $7,562.43                                       
               Times 82 percent business use = $6,201.19                              






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Last modified: May 25, 2011