- 7 - 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 thePage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011