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On part IV of her 1995 Schedule C, petitioner claimed that
she drove her automobile 9,000 miles for business and 3,000 for
“other”, for a total of 12,000 miles for the year.
Petitioner also filed an income tax return, Form 1040, for
1996. On her return, petitioner reported total income in the
amount of negative $11,266, consisting of a “prior year NOL” in
the amount of $19,611 and net profit from her marketing
business in the amount of $8,345. Petitioner attached to her
return a Schedule C, reporting income and deducting expenses as
follows:
Income
Gross receipts $102,513
Less: cost of goods sold -58,350
Gross Profit 44,163
Expenses
Advertising 3,134
Car expenses 5,301
Legal & professional 2,674
Office expense 4,934
Pension & profit-sharing plans 8
Rent or lease (vehicle) 3,968
Rent (other business property) 4,800
Travel 2,667
Utilities 1,712
Other
Dues & memberships $135
Telephone 5,300
Bank charges 584
License 66
Continuing education 535 6,620
Total expenses 35,818
Net profit 8,345
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Last modified: May 25, 2011