Gary G. Bendickson - Page 6




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               At trial, petitioner’s counsel said the only other issue               
          (other than the net operating loss carryover issue) was the                 
          deductibility of auto and travel expenses.  Counsel at that point           
          appeared to be conceding the disallowance of deductions for                 
          entertainment and bookkeeping expenses in the years in question.            
          No evidence was introduced by petitioner on these two issues.  On           
          brief, petitioner’s counsel erroneously states that bookkeeping             
          expenses are subject to the rules of section 274, as the                    
          entertainment expenses are.                                                 
               There is a complete lack of evidence with respect to the               
          entertainment and bookkeeping expenses, and no valid legal                  
          argument regarding these issues was made by petitioner.                     
          Petitioner has failed to substantiate these deductions.  We                 
          sustain respondent as to these two determinations.                          
               There remains the question of petitioner’s disallowed                  
          automobile expense deductions.  Petitioner deducted car and truck           
          expenses of $8,877, $8,420, and $8,315 on his 1993, 1994, and               
          1995 returns, respectively.  The exact amount of the                        
          disallowances of the automobile expense are not part of the                 
          record.  At trial, respondent stated that all of the mileage was            
          allowed except for the commute between the cabin where petitioner           
          resided and his father’s office.  Petitioner did not dispute this           
          statement.                                                                  







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