- 17 -
C, and no further allowances for deductions should be allowed on
Schedule E.
Upon a review of the entire record, this Court is satisfied
that petitioners did not deduct, on Schedule E, expenses relative
to their Florida condo activity. It is evident that petitioners
deducted these amounts on Schedule C, although it is unclear as
to exactly what amount of the Schedule C deductions is
attributable to the Florida condo activity. The Court agrees
that the Florida condo activity expenses would be properly
deductible on Schedule E, rather than Schedule C, and that
petitioners are entitled to deductions for such expenses,
notwithstanding the erroneous categorization of these expenses on
their return.
The Court must, therefore, determine the amount of
petitioners' expenses attributable to the Florida condo activity.
Petitioner asserts that the groups of canceled checks he
introduced at trial included checks for expenses paid in relation
to the Florida condo activity. Petitioner's testimony at trial
with regard to these canceled checks was jumbled and evasive, at
best. However, upon a detailed and exhaustive review of the
canceled checks, the Court is satisfied from the record that
petitioner did incur expenses in relation to the Florida condo
activity in 1991, and some of these expenses can be identified by
some of the checks. Accordingly, the Court finds that petitioner
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011