- 2 - This Court must decide: (1) Whether petitioners substantiated Schedule A medical expenses of $6,393, Schedule A interest expenses of $3,165, a net operating loss carryover of $16,505, Schedule C expenses of $6,260 related to an attorney/sales consultant activity, Schedule C expenses, including cost of goods sold, of $3,433 related to an antiques and jewelry activity, and Schedule C expenses of $26,927 related to an oil and gas activity; (2) whether petitioners are liable for self-employment tax on the income from their Schedule C activities and are entitled to the corresponding deduction; and (3) whether petitioners are liable for the accuracy-related penalty. If petitioners' itemized deductions are less than the standard deduction, petitioners will be entitled to the standard deduction under section 63(b). Some of the facts in this case have been stipulated and are so found. Petitioners resided in Bradenton, Florida, at the time they filed their petition. In 1995, Paul Emerson (petitioner), an attorney, was engaged in the business of an "Attorney/Sales Consultant" and in the business of "Sales-Antiques & Jewelry". As an attorney/sales consultant, petitioner worked with others and anticipated becoming the general counsel of an Ohio corporation. Petitioner worked from home. During 1995, Jane Emerson (Mrs. Emerson) wasPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011