- NEXTRECORD - Petitioner earned approximately $2,900 in 1988 working as an employee for Amoco and Tenneco, which amount he reported on an income tax return for that year. Petitioner did not report income from any other source for that year. Petitioner filed an income tax return for 1990 and reported thereon approximately the same amount of income that he reported on his income tax return for 1991. See infra, next topic. Petitioner's Income Tax Return for 1991 Petitioner filed an income tax return (Form 1040) for 1991, the taxable year in issue. On his return, petitioner reported total income of $4,150. This amount consisted of interest income of $100 and business income of $4,050. On his return, petitioner identified his occupation as "barber". Petitioner attached a Schedule C (Profit or Loss From Business) to his 1991 return. On the Schedule C, petitioner reported gross receipts of $4,500, total expenses of $450, and net profit of $4,050. On his Schedule C, petitioner identified his principal business as "haircutting". Petitioner reported "zero" taxable income, and therefore no "regular" income tax under section 1, on his 1991 return. He did report self-employment tax under section 1401 based on the net profit disclosed on his Schedule C.4 4 Although petitioner reported "zero" taxable income, his return actually disclosed a loss of $1,400. Because petitioner did not claim any deduction under sec. 164(f) for one-half of his (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011