- 6 - shows several instances of numbers that are written over, which suggests to the Court that petitioner altered the numbers to attain a desired result. In juggling the numbers, he apparently forgot to correct the line totaling his expenses. That line showed total deductions of $18,223, when the correct amount was $18,823. That is not the only problem the Court has with the return. The return was a joint return, and one of the expenses claimed on the Schedule C is wages of $550. Petitioner testified that this represented a payment to his wife for services she rendered. Yet, the return fails to reflect the $550 as gross income that should have been reported because petitioner's wife was reporting jointly with petitioner. Some of the other expenses claimed on the Schedule C appear to be duplicative, particularly expenses relating to a home office. With respect to the home office, the Schedule C claimed $755 for "office expenses", $1,200 for rent on business property (on petitioner's home), and telephone and utilities of $4,230. Aside from the fact that all or some of these expenses appear to be duplicative, petitioner presented no evidence that these expenses, if paid or incurred, would be allowable under section 280A, which, in general, denies deductions with respect to the use of a dwelling unit used by the taxpayer as a residence, unless such expenses are, under section 280A(c)(1), allocable to that portion of thePage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011