Alan L. Levitt - Page 16




                                       - 15 -                                         
         testified that the expenses may have related to the collection of            
         fees from clients.  Petitioner did not present any documents or              
         other evidence as to this deduction.  Petitioner failed to                   
         provide the Court with evidence sufficient to establish a                    
         rational basis upon which an estimate can be made.  We sustain               
         respondent’s determination.                                                  
                   7. Office Expense                                                  
              Petitioner deducted $2,014 for office expenses.  At trial,              
         petitioner produced numerous receipts for items such as frames,              
         video repair, bottled water, flowers, books purchased at                     
         Waldenbooks, videos, candy, and numerous purchases from Kinko’s.             
         The record is silent as to whether these expenses are related to             
         petitioner’s trade or business, and we sustain respondent’s                  
         determination as to these items.                                             
              Petitioner submitted a receipt of $177.83 for business cards            
         and $19.25 for an address stamp.  We hold that petitioner is                 
         entitled to deduct these amounts.                                            
              Petitioner produced receipts of $26.45 and $157.23 for the              
         purchase of Macintax software manufactured by Chipsoft.                      
         Petitioner also purchased Turbotax software for $69.85.  Computer            
         software (software) is generally not currently deductible.  Rev.             
         Proc. 69-21, 1969-2 C.B. 303.  Section 197 provides that software            
         purchased by a taxpayer is amortizable over 15 years.  Sec.                  
         197(d).  However, software that is readily available for purchase            






Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011