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interest. We allow petitioners to deduct only the $3,165 of
mortgage interest expense that they claimed on their 1995 return.
On their 1995 return, under "Other income", petitioners
included $16,505 as negative income for a net operating loss
carryover. Under section 172(b), a net operating loss may be
carried back to the 3 preceding taxable years and thereafter
carried forward to the next 15 taxable years. Petitioner did not
provide any evidence, other than the 1994 return, to support the
claimed net operating loss carryforward. The fact that a return
is signed under penalty of perjury is not sufficient to
substantiate deductions claimed on the return. Wilkinson v.
Commissioner, 71 T.C. 633, 639 (1979). We find the evidence
insufficient. Accordingly, we uphold respondent's disallowance
of the net operating loss in full.
In regards to petitioners' Schedule C activities, petitioner
presented canceled checks and credit card statements for amounts
paid for: telephone services; office supplies; an accountant's
services for preparing taxes; professional dues and fees; postal
service; a computer rental; insurance on the home; electric
service in the home; travel expenses such as out-of-town motels,
restaurants, and gas; truck rental; and auto maintenance.
Petitioner testified that he conducted his legal services, the
antiques business, and the oil and gas activities out of 700
square feet of his home. Petitioner testified that the above
expenses were for his businesses, but with the exception of the
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