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After a concession by respondent,2 the issues remaining for
decision are: (1) Whether petitioner is entitled to Schedule C,
Profit or Loss From Business, deductions for travel expenses
related to his trucking activity in excess of amounts allowed by
respondent; (2) whether petitioner is entitled to a home office
expense deduction under section 280A in connection with his
trucking activity; and (3) whether petitioner is liable for an
addition to tax under section 6651(a)(1) for failure to file his
income tax return timely.
Some of the facts were stipulated, and those facts, with the
annexed exhibits, are so found and are incorporated herein by
reference. Petitioner's legal residence at the time the petition
was filed was Tazewell, Tennessee.
During 1994, petitioner was an independent, over-the-road
truck driver. Petitioner operated a 1984 Volvo tractor-truck
that he purchased for $10,000 in January 1994. Petitioner
contracted all of his cargo hauling assignments during 1994
through Knox Cartage in Knoxville, Tennessee. Typically,
2 At trial, respondent conceded that petitioner is
entitled to a Schedule C, Profit or Loss From Business, deduction
of $10,000 under sec. 179 for the cost of a Volvo tractor-truck
petitioner purchased during 1994 for use in his truck driving
activity. Other adjustments in the notice of deficiency are
computational and will be resolved by the Court’s holdings on the
contested issues. These adjustments include increases in
petitioner’s self-employment taxes, the deduction for one-half of
self-employment taxes, and petitioner’s earned income credit.
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