- 7 - During 1990 through 1996, petitioners claimed the following income, expenses, and losses relating to Dr. DeMattia's sponsorship of Constant's golf career: Year Income Expense Loss 1990 $0 $14,507 $14,507 1991 0 45,316 45,316 1992 0 51,461 51,461 1993 1,113 69,160 68,047 1994 561 48,267 47,706 1995 0 25,728 25,728 1996 0 12,891 12,891 Total 1,674 267,330 265,656 The claimed expenses for each year include Constant's personal living expenses such as rent, food, nongolf related transportation and clothing, and entertainment. The claimed expenses also include Dr. DeMattia's travel expenses for trips to Florida and varied tournament locations. Dr. DeMattia maintained a crude record of expenses relating to petitioners' sponsorship agreements. He maintained a series of envelopes in which he stored receipts; for example, hotel bills were placed in the "hotel bill envelope". At the end of each year, Dr. DeMattia would prepare a summary based on those receipts and the summaries were in turn used by his accountant to prepare petitioners' Federal income tax returns. Dr. DeMattia did not maintain a separate bank account for the golf sponsorship activities, nor did he maintain records of tournament entries or prize money availability.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011