- 17 - Petitioner claimed leasing expenses in the amounts of $4,474.37, $8,123.40, and $12,853.67 in 1985, 1986, and 1987, respectively, for the 1984 Cadillac and the Rolls Royce. Respondent disallowed these deductions. The leasing expenses relate to the 1984 Cadillac and the Rolls Royce. Petitioner's sister testified that the Rolls Royce had very low mileage and was usually in the garage. Petitioner did not testify, and presented no evidence, regarding the business use of the Rolls Royce. The mileage logs petitioner submitted supposedly relate to the business use of the 1984 Cadillac; however, as we stated earlier, we do not rely on those logs. Petitioner has not established that he used the 1984 Cadillac or the Rolls Royce in his business; therefore, we conclude that petitioner is not entitled to deductions for leasing expenses in 1985, 1986, or 1987.7 3. Car and Truck Expenses On his 1985 and 1986 tax returns, petitioner claimed car and truck expenses of $1,642.34 and $1,279, respectively. Respondent disallowed these deductions. Petitioner testified that the car and truck expense deductions he claimed were for his annual expenses for gasoline. There is, however, no evidence in the record regarding the amount 7 We note that petitioner attempted to claim both depreciation deductions and lease expense deductions on the Rolls Royce.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011