- 16 -
5. Office Expenses
Petitioner deducted office expenses of $4,829, $8,535, and
$9,308 in 1991, 1992, and 1993, respectively. Respondent allowed
$2,758, $2,195, and $1,451, respectively.
At trial, however, petitioner produced a melange of receipts
that did not substantiate her claimed office expense deductions.
Petitioner attempted to substantiate the claimed office expenses
by submitting check receipts and canceled checks drawn on
Dustbusters checking account and petitioner’s personal checking
account, and credit card statements. Of the receipts presented,
petitioner testified that she counted only items on the receipts
that were related to her office. In arguing that the expenses
were personal in nature rather than related to petitioner’s
business, respondent notes that the receipts included amounts for
union dues associated with her W-2 jobs, Audubon print books,
snacks for the office, medication, vodka and wine, kitchenware,
dance/exercise clothing, Guess brand apparel, floral
arrangements, groceries, hair accessories, blankets, pillows, and
wallpaper. In some instances, receipts were duplicated in the
same year or in subsequent years. Notations, if any, on the
checks submitted were vague. In addition, some checks were
simply made out to “cash” with no notation on the bottom that it
was for a deductible business expense.
Finally, on brief petitioner cites to “Treas. Reg.
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011