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$7,296 to reflect an allowance of the standard deduction. In
addition, respondent disallowed all of the rental expenses.
In the Stipulation of Facts and Agreed Adjustments, the
parties agreed that petitioner is not entitled to the Schedule E
partnership loss or the net operating loss deduction. Of the
disallowed rental expenses, petitioner conceded $4,987 and
respondent conceded $651. With regard to the itemized
deductions, while the parties stipulated that petitioner
substantiated taxes of $2,164, they agreed that there is no tax
benefit because petitioner did not have itemized deductions in
excess of the standard deduction. Finally, respondent conceded
the addition to tax for delinquency.
On his 1991 Federal income tax return petitioner claimed a
fuel tax credit of $8,249. Respondent disallowed this amount in
the notice of deficiency. Respondent contends that petitioner is
not entitled to a fuel tax credit and, in any event, has not
substantiated his expenditures for gasoline and diesel fuel.
Petitioner is a truck driver.2 In 1991, petitioner owned
two vehicles, a dump truck that operates on diesel fuel and a
pickup truck that uses regular gasoline. Petitioner kept the
2 The structure of petitioner’s trucking business
apparently is that of a partnership with his son, petitioner
having 99 percent interest in the partnership. No partnership
agreement or records are contained in the record. The parties
have basically ignored the partnership in presenting this case,
and we shall do so as well.
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