-13-
For the years in issue, petitioner reported no income from
his writing activity but claimed the following as deductible
expenses on his Schedules C:11
1993 1994
Advertising -- $100
Commissions and fees $40 80
Office expense 420 600
Supplies 150 --
Travel 4,230 9,195
Meals and entertainment 2,520 786
Utilities -- 657
Other expenses 7,830 12,099
Total 15,190 23,517
For 1993, the item denominated "other expenses" consists of a
$4,350 joint venture payment to Northwest and $3,480 in cash
payments to prostitutes. For 1994, other expenses consist of the
following: $2,349 for the purchase of a computer, supplies, and
furniture; $480 for mailing expenses; $313 for membership dues;
$5,660 for credit card expenses on out calls; $1,295 for tuition
and books; $500 for sponsoring a race car team; and $1,502 for
miscellaneous other expenses.
Petitioner's travel and meal deductions include expenditures
for airfares, rental car expenses, food, and lodging in
11Petitioner filed two amended returns (Forms 1040X) for tax
year 1994, one on June 15, 1995, and the other on July 7, 1995.
Each amended return had a new Schedule C attached, in which
petitioner adjusted the amount of expenses that he claimed in
connection with his profession as an author. The figures for
1994 represented in the table reflect the Schedule C expenses on
the amended return filed July 7, 1995.
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