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gross receipts and gross income of $3,015, consisting of $1,304
received for the rental of space in her home and $1,711 received
for photography. On the Schedule C, petitioner reported business
expenses of $17,636, resulting in a net loss of $14,621.
Petitioner reported a tax due for 1992 in the amount of $1,189.
Petitioner's 1992 Federal income tax return was filed on April
12, 1993.
For the years in issue, petitioner deducted a variety of
expenses on the grounds that they were connected to her
photography activity. Petitioner deducted the cost of repairing
earthquake damage to her home and the cost of removing some
infested trees from her yard. Petitioner deducted as
"educational supplies" her purchases of recordings of the music
of certain of the bands she had photographed. Petitioner
deducted the full cost of her 1992 membership in the California
State Automobile Association, even though she had only one car
and did not use it exclusively for business purposes. Petitioner
deducted the cost of taking her cousin and the cousin's husband
to Disneyland. Petitioner deducted the cost of a watchband.
During the years in issue, petitioner paid $50 per month to
each of Temple Trust and United Sovereigns and deducted those
amounts. Temple Trust provided record-keeping advice to small
businesses. United Sovereigns was a marketing organization from
which members, including petitioner, received commissions for
enrolling new members. It provided members with a newsletter on
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