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The procedures require the taxpayer to complete the forms and
attachments in a clear manner and in accordance with their
instructions. See Rev. Proc. 92-23, 1992-1 C.B. 738. The
instructions for the Schedules C require a taxpayer to complete
separate schedules for each business of the taxpayer. See
Instructions for Schedule C, Profit or Loss from Business, for
1991 and 1992.
Petitioners filed two Schedules C for each of the years at
issue, one for petitioner's oil and gas production activity and
another for petitioner's medical services practice. Petitioner
does not contend that either activity included petitioner's
activity with regard to Adult Living Centers or the development
of facilities for the elderly. Petitioners did not complete a
7(...continued)
form.
* * * * * * *
(b) Certain Trade or Business Expenses (which, for
purposes of this revenue procedure, include the
following six expenses as they relate to the rental of
property):
* * * * * * *
(2) Legal Expenses: The amount claimed must be
stated. This revenue procedure does not apply,
however, to amounts properly characterized as capital
expenditures or personal expenses, including amounts
that are required to be (or that are) amortized over a
period of years.
(3) Specific Bad Debt Charge-off: The amount
written off must be stated.
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