- 13 - respondent has allowed petitioner a $3,382 professional supplies deduction and a $2,750 depreciation deduction (calculated by dividing the remaining cost basis of equipment, $13,750,5 by a 5- year life of the asset). Petitioner has not presented proof or argument to support a deduction in excess of what respondent has allowed. To support a stage clothes deduction,6 petitioner submitted receipts totaling $695.11, representing purchases of various stage clothes items for which respondent has not allowed any amount. The receipts reflect the purchases of silk boxers, leather pants, men’s underwear, hats, and a vest. Clearly the underwear does not qualify as a business expense. As to the remaining clothes items, we find that the majority of them are adaptable for general and personal wear and, therefore, are not a deductible employee business expense. Some of the more “flashy” and “loud” items, however, might not be acceptable ordinary wear. Although the receipts do not indicate which items fall into that category, we allow petitioner a $200 deduction for stage clothes. See Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930). The claimed agent’s commission expense is supported only by petitioner’s testimony and relates to rent payments petitioner 5 This number is the original cost basis, $17,132, less the amount respondent conceded as deductible in 1991, $3,382. 6 Petitioner did not claim a separate deduction for stage clothes but most likely included it as part of another category.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011