-16-
By way of explanation, petitioner testified that some of his
records were destroyed in a fire.7 Although no explanation was
given why some rent receipts escaped the alleged fire while
others did not, we ascribe some weight to petitioner's testimony
that he worked at Red Lion throughout the year. Based on the
record as a whole, we hold that petitioners are entitled to
deduct rent paid to the Red Lion in the total amount of $1,720
(i.e., 40 weeks times $43 per week). Cohan v. Commissioner,
supra.
5. Repairs and Maintenance
Petitioners claimed a deduction for "Repairs & Maintenance"
in the amount of $2,338. In the notice of deficiency, respondent
disallowed the deduction in its entirety for lack of
substantiation.
According to petitioners, the deduction in question
represents the cost of repairing an existing shoeshine stand and
then building a new shoeshine stand. In this regard, petitioner
testified that repairs to his shoeshine stand were necessitated
by the Port lease; however, according to petitioner, the Port was
not satisfied with the aesthetic appearance of the stand, "So to
bring me up to standards, they got me together with an architect
to build one out of Formica and stuff, basically."
7 See supra note 4.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011