- 108 -
VIII. Claimed Schedule C Expense Deductions
For the years 1973 through 1981 respondent disallowed
claimed expense deductions in the deficiency notices because (1)
they had not been substantiated, (2) they were not shown to be
ordinary and necessary, or (3) they were not shown to be the
expenses of petitioner, but were those of another taxpayer.24
A. Cost of Goods Sold for 1973
For the year 1973 petitioner had purchase debits
(expenditures) in the total amount of $100,966.70, computed as
follows:
Purchase Debits
Company (Expenditures)
Portec-Pioneer $22,029.00
Kuehnennagel 766.23
Hobart Brothers 5,134.94
Hobart Brothers 36.38
Hobart Brothers 1,006.53
Intersoll Rand, SA 6,930.00
F. Khalatbari 15,233.00
Atlantic Richfield 10,058.62
Galion 39,772.00
Total purchase debits $100,966.70
For the year 1973 petitioner's purchase credits
(reimbursements of purchase expenditures) were in the total
amount of $122,888.07, computed as follows:
24 Certain adjustments have been resolved by the parties and can be
reflected in the Rule 155 computations.
Page: Previous 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 NextLast modified: May 25, 2011