Gregory A. Maslow and Marina Maslow - Page 13

               Petitioners claimed $5,184 as commissions expenses.  A portion         
          of this amount represented offices expenses ($1,053), and the               
          balance represented commissions paid to other insurance agents              
          ($4,131).  In the notice of deficiency, respondent allowed all but          
          $2,006 of the claimed $5,184.                                               
               Petitioner testified that the disallowed $2,006 represented            
          payments to Edward Levenson, who obtained an insurance policy that          
          petitioner wrote and for which  he  received  a  commission.                
          Respondent, on brief, concedes that petitioner is entitled to a             
          deduction in the amount of $1,053 for office expenses and $2,006            
          for the payments to Mr. Levenson.  Respondent now asserts that              
          $2,125 should be disallowed as commissions expenses ($5,184 -               
          ($1,053 + $2,006)), claiming petitioner testified that he paid no           
          other commissions in 1992.  Respondent  misunderstands petitioner's         
          testimony; petitioner did not concede any part of the claimed               
          commissions expenses.                                                       
               On the basis of respondent's concession that the $2,006 paid           
          to Mr. Levenson is deductible, and because that amount was the only         
          amount challenged in the notice of deficiency with regard to the            
          claimed $5,184 of commissions expenses, we hold that petitioners            
          are entitled to a Schedule C deduction for commissions expenses in          
          the amount of $5,184, as claimed.                                           

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