Evelyn J. Glenn - Page 6




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           petitioner reported total income in the amount of negative                 
           $19,611, consisting of a “prior year NOL” in the amount of                 
           $14,672 and a net loss from her marketing business in the                  
           amount of $4,939.  Petitioner attached to her return a Schedule            
           C, Profit or Loss From Business, reporting income and deducting            
           expenses as follows:                                                       

                     Income                                                           
                     Gross receipts                   $94,064                         
                     Less: cost of goods sold         -61,004                         
                     Gross Profit                      33,060                         
                     Expenses                                                         
                     Advertising                       $1,838                         
                     Car expenses                       4,682                         
                     Insurance                            765                         
                     Legal & professional               1,525                         
                     Office expense                     2,647                         
                     Rent or lease (vehicle)            4,011                         
                     Rent (other business property)     7,200                         
                     Repairs/Maintenance                1,821                         
                     Travel                             3,271                         
                     Meals/entertainment   $2,162                                     
                     Less: 50%             -1,081       1,081                         
                     Utilities                          2,690                         
                     Other                                                            
                     Dues & memberships     $830                                      
                     Telephone             4,848                                      
                     Bank charges            790     6,468                            
                     Total expenses                    37,999                         
                     Net loss                           4,939                         

                On her 1995 Schedule C, petitioner made no entry on line              
           30 for “Expenses for business use of your home”, nor did                   
           petitioner attach Form 8829, Expenses for Business Use of Your             
           Home, to her 1995 return.                                                  






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Last modified: May 25, 2011