- 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...)
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