- 5 -
to 1993, the same amount was deducted as rent on petitioners’
Schedule C. The rents claimed were for petitioners’ personal
residence.
Respondent determined that petitioners’ deductible losses
were $2,954 for 1992 and $455 for 1993. The remaining deductions
claimed were disallowed because petitioners had not established
that they paid or incurred the expenses during the years in issue
or that the expenses were ordinary and necessary business
expenses.
OPINION
Petitioners contend that they commenced a business in May
1992 and that all of the deductions claimed on their returns were
correct. They assert that their representations must be accepted
and that the Internal Revenue Service (IRS) has “illegally”
disallowed their deductions. Notwithstanding the Court’s attempt
to direct their testimony to specific items, they simply persist
in insisting that the Court require the IRS to “rescind and
abate” the notice of deficiency. Petitioners did not present any
documents supporting their contentions that items listed in their
journals were deductible.
Petitioners have the burden of proving that respondent’s
determination is erroneous. Rule 142(a); INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); Rockwell v. Commissioner,
512 F.2d 882, 886 (9th Cir. 1975), affg. T.C. Memo. 1972-133.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011