- 6 -
Schedule C Expense 1991 1992
Commissions1 $3,239.75 $1,231.90
Legal & professional service 4,800.00 4,111.59
Office 3,759.65 3,798.43
Repairs 295.74 - 0 -
Supplies 630.88 - 0 -
Taxes 1,793.94 2,008.31
Travel 315.00 310.35
Utilities 253.93 302.70
Other expenses 957.93 389.31
Depreciation 1,735.18 2,776.28
Insurance 141.00 141.00
Interest 9,504.89 7,366.99
TOTAL 27,428.54 22,436.86
1 These represent fees paid to Skippack Township as costs
for the public hearings.
All of the above expenses were incurred attendant to
petitioners' business as LM Development and, with one exception,
see infra pp. 11-12, were directly related to petitioners'
attempt to improve the value of the land.
Respondent's Determinations
Respondent issued the notices of deficiency for the taxable
years 1991 and 1992 on January 6, 1995. The adjustments to
income were as follows:
Item 1991 1992
All Schedule C expenses $27,428 $22,437
Self-employment Tax deductions (8) (42)
Itemized deductions (1,309) (870)
Previous Litigation
Hustead v. Commissioner, T.C. Memo. 1994-374, concerned the
deductibility of petitioners' Schedule C expenses for LM
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Last modified: May 25, 2011