- 9 -
however, does not reveal whether the new solarium was used for
business purposes after September 30, 1993. On its FYE 1993
Federal income tax return, Holland America deducted the entire
cost of the new solarium as a “small tools” expense.
Miscellaneous Expenses
During FYE 1993, Holland America paid various expenses
associated with the property located at 1066 South Pekin Road,
including electricity, property tax, and hazard insurance
premiums.
Holland America paid and deducted the entire electricity
bill associated with the property for FYE 1993. In FYE 1993,
there were approximately six or seven separate electricity meters
for various buildings on the property. There was only one
electricity meter attached to Mr. and Mrs. Dobbe’s residence.
Holland America paid the $2,000 electricity bill attributable to
the Dobbe residence, as shown by a separate electricity meter,
and deducted the entire amount on its Federal income tax return.
Holland America also paid, and claimed a deduction for, the
entire property tax associated with the property at 1066 South
Pekin Road, including that portion determined to be associated
with Mr. and Mrs. Dobbe’s residence ($2,054).
Lastly, Holland America paid, and claimed a deduction for,
all hazard insurance premiums associated with the property
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011