Robert B. and Betty D. Harris - Page 32




                                       - 31 -                                         
               For 1995, petitioners deducted other miscellaneous expenses            
          of $1,298.42.  These expenses consisted mainly of a $1,000                  
          payment to Bellmark for an undisclosed purpose, as well as                  
          payments by petitioner wife to the U.S. Postal Service, a $39               
          payment to Avis,12 $5 for a frequent flyer guide, a $15 credit              
          card late fee, $20 for a Federal Express package from Al Bell,              
          and a $111.88 credit card charge for Farm Gusher in Tijuana,                
          Mexico (totaling $1,190.88).  None of these expenses was                    
          established as an ordinary and necessary expense incurred in the            
          conduct of a trade or business; consequently, petitioners are not           
          entitled to deduct these expenses.                                          
               For 1996, petitioners deducted office expenses of $125.10,             
          supplies expenses of $441.11, miscellaneous expenses of $90.65,             
          $35.32 for dues and publications, and $161.97 for shipping and              
          postage.  The claimed office expenses consisted mostly of several           
          amounts paid to unidentified recipients for unidentified                    
          merchandise or services, four rolls of film purchased from a                
          Kroger grocery store, a watch battery, plastic tape, a padlock,             
          and other merchandise purchased from a Staples office supply                
          store.  The claimed supplies expenses consist of amounts paid to            
          Sam’s Club for unidentified merchandise.                                    



               12   The notation “Bellmark” was listed in the memo section            
          of this canceled check.                                                     






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