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THE COURT: Seems to me it would have been cheaper
to go out and buy the videos, than to spend $2,000
renting them.
THE WITNESS: Well, we ended up going out and
buying them, too, Your Honor.
In addition to the cost of the 632 meals, petitioners in
1993 deducted as supplies $7,000 worth of groceries. To justify
this deduction, Mr. Simpson testified that petitioners provided
children in their care with four meals a day. Mr. Simpson
admitted, however, that his family consumed some of the
groceries. Furthermore, Mr. Simpson stated that petitioners did
not maintain records delineating the groceries that were
exclusively used for the day-care service. Therefore, even if
some of the groceries were attributable to the day-care service,
petitioners cannot establish the amount devoted to that purpose.
In essence, petitioners want the Government to subsidize their
daily food consumption.
Petitioners' pattern of deducting personal expenditures was
not limited to meals and entertainment. Petitioners also
deducted supply expenses of $10,994 for 1992 and $16,697 for
1993. These deductions included expenditures for a VCR, a wide-
screen television, a satellite television system, and a cross-
country ski machine. Petitioners contend that these expenses
were necessary startup costs associated with the day-care
service. Petitioners have failed, however, to establish a
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