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use in 1994 in the total amount of $1,396. In addition,
petitioners claimed various itemized deductions, including
medical and dental expenses in the amount of $11,976.
During 1994, Mr. Logie received $6,445 in Social Security
benefits. Petitioners did not report any Social Security
benefits on their 1994 return. Petitioners paid no self-
employment tax on the compensation paid to them by the
Interdenominational Gospel Chapel.
Respondent issued a notice of deficiency determining a
deficiency in petitioners' joint Federal income taxes in the
amount of $14,322 for 1994. In the notice of deficiency,
respondent disallowed both the exclusion from income and the
adjustment to income for the claimed parsonage allowance.
Respondent disallowed the duplicative Schedule C deduction for
supplies expense in the amount of $1,400. Respondent also
disallowed $1,102 of the total $1,396 petitioners claimed as
Schedule C deductions for telephone expenses, on grounds that
petitioners failed to show that the amount disallowed was not a
personal expense. Respondent did not challenge petitioners'
claimed medical and dental expenses or other itemized deductions.
Respondent also determined a deficiency in petitioners'
self-employment taxes for 1994 in the amount of $5,213, and
allowed a corresponding income tax deduction in the amount of
$2,607. In addition, respondent determined that petitioners were
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