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After concessions,1 the issue is whether petitioner is
entitled to deduct certain Schedule C expenses.
The facts may be summarized as follows. Petitioner resided
in Baltimore, Maryland, at the time the petition was filed. In
1994, petitioner was employed by the Board of Education for
Prince Georges County, Maryland, as an interpreter for the deaf.
Petitioner also engaged in work as an interpreter for the deaf as
an independent contractor in 1994.
During 1994, petitioner was also engaged in the trucking
business. Petitioner purchased a truck tractor in 1993. During
1994, petitioner hired an independent contractor to drive the
tractor. Petitioner would enter into contracts with shippers to
have the tractor used to haul their freight. Petitioner sold the
tractor in 1995.
On Schedule C for 1994 petitioner reported income and
claimed deductions for both the interpreting work and the
trucking business. Respondent disallowed certain expenses, and
the following items remain in dispute.
1 Respondent concedes that petitioner is entitled to the
following deductions: $1,600 in depreciation, an insurance
expense of $394, and $1,035 in toll charges. Respondent also
concedes that if petitioner's income falls below the threshold
amount, petitioner is entitled to an earned income credit.
Petitioner concedes that she is subject to self-employment taxes;
she is therefore entitled to a deduction for self-employment
taxes.
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