- 11 - yard, did laundry, and shopped for food and supplies for the day care activity. Mrs. Willits would operate the day care for about 48 weeks per year, allowing herself time for vacation. During 1993, Mrs. Willits cared for three infants. She charged $100 per week for each child. The kitchen, family room, and backyard were allocated to the day care activity. When the children napped, they would do so in the den, the spare bedroom, and the master bedroom. The children would play in the enclosed backyard where there were toys and playground equipment. Mrs. Willits hired a gardener to maintain the yard. On her Schedule C, filed with petitioners’ joint return for 1993, Mrs. Willits reported $14,200 in gross receipts and claimed the following expenses: Expense Amount Advertising $165 Car and truck 987 Depreciation 217 Insurance 600 Legal & profl. 300 Office 350 Supplies 450 Dues and pubs. 140 Laundry and cleaning 1,200 Business gifts 250 Diapers/baby supplies 945 Food 2,700 Yard maint. 1,250 Telephone 390 Total 9,944 Mrs. Willits also claimed a deduction of $3,437 for business use of home on attached Form 8829. Mrs. Willits’ net profit fromPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011