- 3 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
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