Charles A. and Carol M. Willits - Page 11




                                       - 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 from           







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011