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1. Whether petitioner is entitled to deductions for
business expenses. We hold that he is to the extent provided
below.
2. Whether petitioner is entitled to certain itemized
deductions. We hold that he is to the extent provided below.
3. Whether petitioner is entitled to a credit for Federal
tax paid on fuel. We hold that he is not.
4. Whether petitioner is liable for an accuracy-related
penalty. We hold that he is.
Petitioner resided in Evanston, Illinois, at the time he
filed his petition. During 1993, petitioner worked as a
traveling salesperson, driving to various sites and selling
peanuts, candy, soda, pastries, and other snacks out of his
automobiles. He also sold Bibles and secondhand clothing.
Petitioner filed in a timely manner his 1993 Federal income
tax return. On Schedule C of the return, he reported $61,250 of
gross receipts, $11,975 of "other income" (i.e., relating to fuel
credits), and $37,100 of expenses. On Schedule A, he claimed
$27,018 of deductions. In the notice of deficiency, respondent
disallowed all of petitioner's Schedule C expenses and the
following Schedule A deductions: $4,100 of taxes, $3,300 of
charitable contributions, $13,850 of casualty losses, and $1,000
of miscellaneous deductions. In addition, respondent disallowed
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