- 5 -
Radio & TV ads $15,000
Brochures & folios 3,500
Other print ads 3,000
Total 21,500
The $40,612 of expenses claimed by petitioner on Schedule C
and disallowed by respondent was as follows:
1. Advertising $2,500
2. Bad debt 1,700
3. Car and truck 8,400
4. Legal and professional 3,342
5. Office 6,360
6. Travel 1,829
7. Entertainment 754
($942 - $188 (20 percent) = $754)
8. Publications 427
9. Printing 15,300
Total 40,612
Respondent's determination in the notice of deficiency is
presumed correct, and petitioner bears the burden of proving that
it is incorrect. Rule 142(a).
Section 162 allows a deduction for ordinary and necessary
business expenses. Whether an expense is deductible under
section 162 is ultimately a question of fact. Commissioner v.
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Last modified: May 25, 2011