- 9 -
petitioner's music activity was an activity not engaged in for
profit within the meaning of section 183. Thus, respondent is
sustained on this issue.
We must next decide whether petitioner is entitled to a
deduction in the amount of $3,018 under section 213 for taxable
year 1994. As stated above, petitioner claimed $3,018 in
expenses for supplies attributed to his Shaklee Sales business in
1994. Petitioner concedes that he incorrectly claimed this
amount as expenses for supplies. He argues that it should have
been claimed as a medical expense deduction under section 213.
Section 213 allows a deduction for expenses paid during the
taxable year, not compensated for by insurance or otherwise, for
medical care of the taxpayer, his spouse, or a dependent. The
taxpayer must substantiate any deductions claimed under section
213 by furnishing the name and address of each person to whom
payment for medical expenses was made and the amount and date for
each such payment. Sec. 1.213-1(h), Income Tax Regs. Moreover,
the taxpayer must be prepared to substantiate any claimed
deductions by furnishing statements or itemized invoices from the
individual or entity to which payment for medical expenses was
made. Sec. 1.213-1(h), Income Tax Regs. These statements or
invoices should indicate the nature of the service rendered, and
to or for whom rendered. Sec. 1.213-1(h), Income Tax Regs.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011