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The specific items reported on the Schedules C are as follows:
1989 1990
Income:
Gross receipts $459,553 $480,035
Cost of goods sold 358,976 363,056
Gross income 100,577 116,979
Deductions:
Advertising 769 1,821
Commissions and fees -0- 29,650
Car and truck expenses 15,824 -0-
Insurance 5,678 5,837
Interest (mortgage) -0- 7,540
Interest (other than mortgage) 9,101 8,135
Legal and professional 3,065 7,539
Office expenses 3,943 14,254
Rent (other business property) 1,493 -0-
Supplies 2,782 2,733
Taxes 689 790
Travel -0- 19,612
Meals and Entertainment -0- 568
Utilities 4,106 9,071
Other Expenses
“Sub” 65,565 -0-
“Bk Chg” 353 201
Total 113,368 107,751
Net profit (loss) (12,791) 9,228
On each Schedule C, petitioners responded “No” to the question
“Are you deducting expenses for the business use of your home?”,
although it appears that at least portions of certain deductions
relate to the use of petitioners’ residence in connection with
the business.
The net loss from the business is the only item taken into
account in the negative adjusted gross income reported on
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Last modified: May 25, 2011