- 4 -
Vehicle expenses $2,408
Parking fees & tolls 382
Lodging 120
Other business expenses 70
Meals & entertainment 344
In the statutory notice of deficiency, respondent disallowed
any deduction for these expenses. Petitioners allege that these
expenses were paid for petitioner wife's activities on behalf of
ADE during 1993.
On a Schedule C attached to petitioners' 1994 return,
petitioner reported gross income in the amount of $4,750 and
claimed expenses in the total amount of $33,748.65 with respect
to ADE. In the statutory notice of deficiency, respondent
allowed deductions for $5,550 of the claimed expenses. After
concessions by the parties, the following amounts remain in
issue:
Expense Claimed Allowed Concessions In Issue
Advertising $208.40 $208.40 - 0 - - 0 -
Car & truck 7,420.80 - 0 - - 0 - 7,420.80
Depreciation 6,135.18 - 0 - 3,782.62 2,352.56
Insurance 854.30 - 0 - - 0 - 854.30
Interest 4,763.73 - 0 - 4,529.46 234.27
Office expense 1,265.45 845.47 - 0 - 419.98
Rent or lease of
business property 2,818.46 2,814.84 3.62 - 0 -
Repairs & maintenance 1,240.30 - 0 - - 0 - 1,240.30
Supplies 250.18 - 0 - - 0 - 250.18
Taxes & licenses 1,690.88 1,680.88 10.00 - 0 -
Travel 4,980.40 - 0 - - 0 - 4,980.40
Meals & entertainment 1,640.12 - 0 - - 0 - 1,640.12
Utilities 480.45 - 0 - 480.45 - 0 -
Section 162(a) allows a deduction for the ordinary and
necessary expenses paid or incurred during the taxable year in
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Last modified: May 25, 2011