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The parties have agreed that the above checks were issued to
the named payees in the amounts stated, and respondent has
conceded that petitioner is entitled to deduct advertising
expenses of $511.
Petitioner testified that most of the expenditures were for
advertisements, business cards, brochures, and trade
publications. Petitioner could not recall the purpose of some of
the items such as the $20 expenditure to Franklin Photo, the
$57.25 expenditure to Landell School, and the multiple
expenditures to the City of Cypress on November 5, 1994.
Petitioner did not introduce as evidence any advertisement,
business cards, or other business items allegedly purchased with
the listed checks.
Petitioner also claimed a miscellaneous cash amount of $250
to cover miscellaneous amounts that he allegedly spent but could
not remember or substantiate. Petitioner conceded at trial that
this amount was an estimate.
On this record, we conclude that respondent’s concession of
$511 for advertising is reasonable, and we sustain respondent’s
adjustment to petitioner’s advertising expense deduction as
modified.
Car and Truck Expenses
On his 1994 Schedule C, petitioner claimed a deduction for
car and truck expenses in the amount of $8,840. In connection
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