Charles A. Dennis and Alison M. Dennis - Page 8

                                        - 8 -                                         
               Petitioners have conceded that $45 should have been reported           
          as interest income in 1991 earned on a bank account.  They claim            
          that they are entitled to a deduction of $48, the amount of bank            
          fees incurred in maintaining the account either as an ordinary              
          and necessary trade or business expense, under section 162, or as           
          an ordinary and necessary expense incurred for the production of            
          income, deductible under section 212.                                       
               The general rule is that bank fees are deductible only if              
          the bank account on which the fees were incurred was used for               
          business purposes.  Callander v. Commissioner, 75 T.C. 334                  
          (1980).  The only evidence that the account was used for business           
          purposes is petitioners' testimony at trial.  Petitioner failed             
          to offer into evidence any records that would show that this                
          account was not used for personal purposes.  Petitioners are                
          accordingly not entitled to any deduction for the bank charges.             
          Unreported Income                                                           
               Respondent determined that petitioners received income in              
          the form of discounted insurance premiums from Doug Priester in             
          1991.  Petitioner testified at trial that he performed no                   
          services for Doug Priester and that he did not receive a Form               
          1099--or cash--from Priester.  Petitioner did purchase insurance            
          from Priester, but offered nothing into evidence on this issue              
          that would rebut the determination that he received a discount              
          that constituted income.                                                    

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011