- 4 -
Business mileage $1,158
Cellular pager 514
Telephone 113
Printer and adding machine 139
Miscellaneous supplies 86
Meals and entertainment 246
Fees 390
Tolls 246
Total 2,892
Respondent allowed petitioners’ deductions for the following
Schedule C expenses:
Business mileage $24
Legal and professional expenses 100
Office expenses 5
Supplies 189
Utilities 13
Total 331
Respondent maintains that petitioners have failed to
establish that the expenses claimed on their 1996 return for
which deductions have been disallowed are ordinary and necessary
within the meaning of section 162(a) and have failed to
substantiate the expenses.2
Discussion
Generally, a taxpayer may deduct all ordinary and necessary
expenses paid or incurred during the taxable year in carrying on
a trade or business. See sec. 162(a). No deduction is allowed
for personal, living, or family expenses. See sec. 262. Thus,
2 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the year in issue.
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Last modified: May 25, 2011