- 4 - rendering services to Ro-Tile. Petitioner also used the truck "to do a lot of hauling out to the ranch" in connection with his real estate partnership activity. He did, in addition, "some computer work" for his real estate partner "Doc" Bakos. Petitioners' daughter was enrolled at the University of the Pacific, near but south of Lodi in Stockton, California. Stockton is near enough to Lodi that a telephone call from one town to the other is a local call. Petitioner, from time to time, visited his daughter in Stockton when driving the truck to or from a Ro-Tile trip. Petitioners, on Schedule C of their 1994 Federal income tax return, claimed "utilities" expenses that were actually telephone expenses of $1,137.31, and car and truck expenses of $13,049. Using the optional standard mileage rate, petitioners' claimed car and truck expenses were based upon 100 percent business use of the truck for a total of 34,748 miles, and 48.31 percent business use of the Lincoln for 7,289 business miles. Petitioners also included, in their claimed car and truck expenses, small amounts for parking fees, tolls, property taxes, and interest. After examining their return, respondent determined that petitioners are not entitled to claim as business expenses either their telephone expenses, because they are personal expenses, orPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011