-16- 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 = $6,201.19Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011