- 9 - sold him the truck subject to the security interests of National Bank of Detroit and Pro Am.4 A document was filed with the State of Indiana, reflecting that Mr. Tillman purchased the 1988 Peterbilt truck in 1987 for $71,944. Later that year, the State of Indiana issued a certificate of title to Mr. Tillman showing that he owned the 1988 Peterbilt, and that the lienholders were National Bank of Detroit and Pro Am. Pro Am issued Mr. Tillman a statement showing that his interest charges would be $10,513 for 1988, if he timely made all of his required payments. OPINION Petitioners must prove that respondent's determinations set forth in her notices of deficiency are incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Respondent must prove the increased deficiencies asserted in her amendment to answer. Rule 142(a); Estate of Bowers v. Commissioner, 94 T.C. 582, 595 (1990). 1. Additional Schedule C Expenses An individual may deduct all ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade 4 Mr. Tillman had borrowed $80,157 from Pro Am to acquire the 1988 Peterbilt. The loan agreement states: Borrower warrants and agrees that: * * * Borrower is the owner of the Collateral free from any liens, encumbrances or security interests except for the security interest granted hereby, and will defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein; * * *Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011