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3. Automobile and Truck Expense
Petitioner also claimed automobile and truck expenses in
1992, 1993, and 1994 of $32,456, $60,550, and $58,082,
respectively. Respondent determined that petitioner is not
entitled to automobile and truck expenses in 1992, 1993, and 1994
of $3,794, $6,177, and $5,925, respectively, and disallowed those
amounts.
4. Depreciation on Personal Use Automobiles
Petitioner claimed depreciation deductions in connection
with automobiles its shareholders personally used for 1992, 1993,
and 1994 of $1,590, $9,623, and $594, respectively. On the basis
of the nature of and facts surrounding petitioner’s business,
respondent allowed 50 percent of the depreciation amounts claimed
by petitioner on the automobiles.
5. Olympic’s Expenses Paid by Petitioner
Petitioner claimed deductions in the 1992 tax year for
expenses paid on behalf of Olympic. These expenses included
purchases of $6,128, fuel expenses of $13,233, legal fees of
$10,931, and travel expenses of $11,412. Respondent determined
that petitioner is not entitled to deduct these expenses.
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