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3. General
Petitioner claimed a deduction for general expenses of
$1,949. Respondent disallowed $1,266 of this general expense.
As with other items of expense deductions, petitioner’s
testimony provided little guidance as to what was claimed under
the “general” category. Although petitioner’s summary of his
credit card spending for 1995 is helpful to substantiate amounts
paid during that year, it provides no other helpful information.
Petitioner is required to provide a business purpose for expenses
claimed under section 162. Without a clear indication of what
amounts constitute “general” expenses, we cannot allow a
deduction in excess of respondent’s previously allowed amount.
Respondent is sustained on this issue.
4. Business Use of Home
Section 280A generally prohibits deduction of otherwise
allowable expenses with respect to the use of an individual
taxpayer’s home. This prohibition, however, does not apply to
any item that is allocable to a portion of the home that is
exclusively used on a regular basis as the principal place of
business for the taxpayer’s trade or business or to space that is
used on a regular basis for storage of the taxpayer’s inventory
held for use in the taxpayer’s trade or business of selling
products at retail or wholesale. Sec. 280A(c)(1) and (2).
Petitioner claimed a Schedule C business use of home expense
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Last modified: May 25, 2011