- 4 - Petitioners reported the results of the financial planning business on the Schedule C. Petitioners computed the taxable income of the financial planning business under the cash receipts and disbursements method of accounting. The Schedule C reports gross receipts of $424,497 and net profit of $203,020. In part, respondent’s determination of a deficiency in tax results from the following adjustments (disallowances) of deductions claimed on the Schedule C: Depreciation $34,726 Meals & entertainment 40,000 Office expenses 24,091 Rental expenses 18,247 Travel 17,584 Seminars 15,260 Presentations 12,675 On brief, petitioners concede the following: (1) the correctness of respondent’s disallowance of any deduction for travel, (2) the correctness of a portion of respondent’s disallowance of a deduction for depreciation, (3) the correctness of a portion of respondent’s disallowance of a deduction for office expenses, (4) that the amounts claimed for “seminars” and “presentations” are amounts paid for meals and entertainment, which are subject to the 50-percent disallowance rule of section 274(n), and (5) the correctness of a portion of respondent’s disallowance of a deduction for meals and entertainment (including the amounts claimed for “seminars” and “presentations”).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011