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reflecting information such as payee names and amounts paid. The
adjacent or facing page reflects totals by expense category such
as electricity, telephone, shop expenses, rent, and office
expenses. Petitioner then applied percentages to certain
expenses such as electricity, heat, insurance, and telephone
because the amounts paid reflected the total usage for his
household including personal use. Petitioner claimed deductions
for business expenses at a rate of approximately 50 percent of
the amounts paid for utilities for the house. The yearend total
page includes expenses which are not recorded on the monthly
logs. For example, rent expense is shown as 40 percent of
petitioner's total house payments of $11,400, or $4,560 for 1990,
but no rent expense is shown for any particular month during that
year. Petitioner estimated certain expenses such as fuel
expense, which he approximated as $100 per month.
During 1990, petitioner traveled to Hawaii. Petitioner
claimed a portion of the expenses from this trip as business
related. Petitioner traveled to Antwerp sometime in 1991 to tour
a diamond cutting facility, and petitioner claimed expenses from
this trip as a business deduction. Petitioner provided no
records of these expenses.
Petitioner and his former wife filed joint Federal income
tax returns for 1990 and 1991 and reported combined total wages
in the respective amounts of $38,253 and $47,310. Petitioner
also reported pension and annuity distributions from Tektronics
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Last modified: May 25, 2011