- 17 - a total of $130. For 1992 respondent allowed petitioner 7-1/2 days at $26 per day for a total of $195. For 1993 respondent allowed petitioner 14-1/2 days at $26 per day for a total of $416.6 Respondent disallowed $1,592, $597, $324, $886, and $2,104 of the meal and entertainment expenses claimed on the Schedules C for 1989, 1990, 1991, 1992, and 1993, respectively. Bad Debt Deduction During November 1991, Ted Kadrlik (Mr. Kadrlik) asked petitioner to represent him on check fraud charges. Mr. Kadrlik gambled, causing financial hardship for his family. Petitioner declined to represent Mr. Kadrlik, but petitioner agreed to advance Mr. and Mrs. Kadrlik (the Kadrliks) some money. On November 25, 1991, petitioner gave the Kadrliks a check for $300. The check memo line contained the notation “Loan”. The Kadrliks did not give petitioner a promissory note relating to the $300 payment. The Kadrliks did not repay the money. Petitioner asked the Kadrliks for the money a few times, but he made no other attempt to collect on the debt. He believed that it would not be appropriate to sue the Kadrliks for collection because of their 6The parties stipulated that respondent allowed petitioner $416 for 1993 calculated on the basis of $26 per day for 14-1/2 days. Our calculation, however, shows that the meal allowance would be $377 ($26 per day multiplied by 14-1/2 days). The parties do not explain the discrepancy, nor does the record clarify the difference in calculations. In the absence of an explanation, however, we defer to, and accept, the parties’ stipulation. See Rule 91(e).Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011