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OPINION OF THE SPECIAL TRIAL JUDGE
POWELL, Special Trial Judge: Respondent determined a
deficiency and an accuracy-related penalty for negligence under
section 6662(a) in petitioners' 1994 Federal income tax in the
respective amounts of $10,959 and $2,192.
The issues focus on whether certain expenses paid by
petitioners during 1994 are deductible under section 162. At the
time the petition was filed, petitioners resided in Belgrade,
Montana.
Before trial, petitioners filed a motion for summary
judgment raising various procedural issues concerning the
involvement of the Montana Department of Revenue and the Internal
Revenue Service examination of petitioners' returns for 1994
filed with the State of Montana and the Federal Government.
Petitioners' motion for summary judgment was denied in the
Court's opinion at Stone v. Commissioner, T.C. Memo. 1998-314.
We turn now to the underlying substantive dispute.
Background
The facts may be summarized as follows. Petitioner Jeffrey
C. Stone (Mr. Stone) operates an appliance repair business.2 Mr.
Stone has a shop in Belgrade that is approximately 8 miles from
2 Petitioners also testified that in addition to the
appliance repair business they conduct business activities
involving the sale of water and air filters and "Melaleuca"
sales. It does not appear, however, that either of these
activities generated any income.
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