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In connection with petitioner's business, petitioner claimed
on his 1986 Federal income tax return the following income1 and expenses:
Gross receipts $37,850
Advertising $2,480
Bank service charges 69
Car and truck expenses 6,980
Commissions 4,440
Dues and publications 990
Freight 140
Insurance 1,400
Legal and professional services 600
Office expense 798
Rent on business property 2,400
Repairs 2,006
Supplies 985
Taxes 398
Travel and entertainment 698
Utilities and telephone 1,295
Airline travel 1,490
Hotel 895
Answering service 185
Taxi and bus 390
Total expenses $28,639
Respondent determined that all of petitioner's claimed
business deductions were disallowed for lack of substantiation.
Petitioner kept records of his business expenses for 1986;
however, these records were destroyed in a fire in Trenton, New
Jersey, in 1988 or 1989.
Business Deductions
Respondent disallowed all of petitioner's claimed business
deductions for lack of substantiation. Petitioner asserts that
he is entitled to deduct the entire amount of $28,639.
1
Petitioner further reported interest income of $277 and
gambling winnings of $782 for 1986.
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