- 4 -
Countrywide a copy of what he claimed was his 1994 Federal income
tax return (unfiled return).
Petitioner is a calendar year taxpayer who employed the cash
method of accounting. Petitioner filed his 1994 Federal income
tax return on October 18, 1996. Petitioner itemized his
deductions on Schedule A, Itemized Deductions, and as relevant to
this case, he deducted $2,667 for attorney’s and accounting fees.
On Schedule C, Profit or Loss From Business, for BHTC, petitioner
reported gross income of $17,475. Petitioner also claimed
deductions for expenses relating to BHTC as follows:
Expense Amount
Advertising $4,441
Car and truck 6,965
Commissions and fees 1,194
Depreciation 2,403
Legal and professional 425
Office 2,014
Rent or lease (other business property) 4,320
Repairs and maintenance 431
Supplies 306
Taxes and licenses 167
Travel, meals and entertainment 3,608
Utilities 5,206
Wages 250
Bank service charge 288
Newspaper and magazine subscription 137
32,155
Petitioner did not attach a depreciation schedule to his return.
On Schedule C for BHSMM, petitioner reported gross receipts
of $16,820. Petitioner also reported cost of goods sold of
$11,204 and claimed deductions of $4,606 for various expenses.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011