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for "Office space" in the amount of $5,800 and "Legal fee" in the
amount of $4,200.3
Petitioner asserts that a friend prepared his 1989 and 1990
returns. The record does not indicate the name or occupation of
the preparer. The return preparer signature line on each of the
1989 and 1990 returns is blank. Petitioner could not explain the
basis for many of the deductions claimed on the returns. As
previously indicated, petitioner conceded some of the claimed
deductions at trial.
Petitioner asserts that the deductions claimed for the home
office and legal fees are correct as reflected on his 1989 and
1990 returns. Petitioner arrived at the amounts of his home
office deductions by approximating the cost of renting comparable
office space for the year. Respondent allowed petitioner
deductions of one-sixth of the costs associated with his home.
(Petitioner's home consists of six rooms, one of which was used
as an office.) The room petitioner utilized as an office
measures 10 feet by 10 feet, or 100 square feet, in a home that
is approximately 1,800 square feet. In this room petitioner
reviewed the homework of his students and prepared for class.
Petitioner asserts that he incurred legal expenses relating
to an action brought by his former wife in 1987 to gain custody
3 At trial, petitioner indicated that the total amount of legal fees
claimed on his 1989 and 1990 returns was incorrect. Petitioner indicated that
he should have claimed $10,000 in legal fees on each of his 1989 and 1990
returns.
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Last modified: May 25, 2011