Kenneth G. Schladweiler - Page 8

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               Fuel Expenses                                                          
               Petitioner claimed fuel expenses of $25,864, $17,982, and              
          $24,041, respectively, on his 1992, 1993, and 1994 Federal income           
          tax returns.  In the notice of deficiency, respondent disallowed            
          a portion of the fuel expenses paid in each year-–$2,601 for                
          1992, $242 for 1993, and $4,528 for 1994.  Respondent asserts               
          that petitioner failed to substantiate the actual payment of the            
          expense in some cases and the business purpose for the payment in           
          others.  Petitioner’s documentation of his disallowed fuel                  
          expenses, as described by respondent, included receipts for                 
          unleaded gasoline and checks written to gas stations/convenience            
          stores with no receipts to indicate what, if anything, was                  
          purchased.  Petitioner did not offer the documentation into                 
          evidence.  Petitioner’s dump truck used diesel fuel, so we can              
          only conclude, based on respondent’s description of petitioner’s            
          documentation, that the receipts for unleaded gasoline related to           
          one of petitioner’s other vehicles.                                         
               Petitioner has failed to prove that he is entitled to fuel             
          expense deductions in excess of those allowed by respondent.                
               Petitioner claimed he paid $3,484, $1,965, and $1,222 for              
          business meals in 1992, 1993, and 1994, respectively, of which he           
          deducted $2,787, $1,572, and $611 after applying the applicable             
          percentage limitation of section 274(n).  Because petitioner was            

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