- 6 - total mileage for that year (12,867 miles and 1,176 miles, respectively). Petitioners claimed an additional $677 in miscellaneous business expenses in connection with Mrs. Bradley's employment for a total of $5,777 in unreimbursed employee business expenses. In the notice of deficiency, respondent disallowed claimed deductions for all of petitioners' employee business expenses on the grounds that (i) they constituted reimbursable transportation expenses and/or (ii) they constituted personal commuting expenses. On Schedule E of their return, petitioners claimed $22,507 in losses with respect to four pieces of real property held by them in 1992, consisting of three residential rental properties (the Hearthwood Condominium, the River Stone II Condominium, and a house in Windsor Village) and a parcel of vacant land in Utica, Mississippi (the Mississippi land). Petitioners computed losses on Schedule E as follows: Windsor Mississippi Item Hearthwood River Stone Village Land Total Income (Rents) $2,400 $3,000 $2,400 -0- $7,800 Expenses (Management fees, mortgage interest, etc.) 6,472 8,8864,743 $2,003 22,104 Depreciation 2,757 3,628 1,818 -0- 8,203 Loss ($6,829) ($9,514) ($4,161) ($2,003) ($22,507) In the notice of deficiency, respondent disallowed the $22,104 in expenses claimed by petitioners with respect to thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011