-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 = $6,201.19
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