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hold that petitioners are entitled a Schedule C utility expense
deduction in the amount of $250.
The second issue for decision is whether petitioners are
entitled to a loss deduction with respect to certain stock.
Petitioners did not claim any stock loss deductions on their
return. They first claimed these losses during the audit of
their 1992 taxable year.
Petitioner husband established through his testimony and two
documents that he purchased stock in Codecard Inc. and Horizon
Tech Corp. sometime prior to 1989. He failed to prove, however,
that the stock became worthless during petitioners' 1992 taxable
year. Sec. 165(g); sec. 1.165-5(c), Income Tax Regs. We
therefore hold that petitioners are not entitled to a stock loss
deduction for 1992.
The third issue for decision is whether petitioners are
entitled to a deduction for tax preparation fees. Petitioners
submitted as evidence a charge for the preparation of their 1991
Federal income tax return which was paid during 1992. In the
statutory notice of deficiency, respondent allowed petitioners
their claimed Schedule C deduction for legal and professional
services in the amount of $1,000.
We find that petitioners have not proved that the amount
allowed by respondent as a Schedule C deduction for legal and
professional services did not include the amount paid for the tax
preparation fees. Moreover, the tax preparation fees would only
be allowable as a Schedule A miscellaneous expense deduction if
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Last modified: May 25, 2011