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Respondent determined a deficiency of $28,708 and an
addition to tax under section 6651(a)(1) of $6,567 for the
taxable year 1993.
Some of the facts in this case have been stipulated and are
so found. Petitioners resided in Fontana, California, at the
time they filed their petition.
On the 1993 Federal income tax return, filed March 15, 1996,
petitioner Marvin J. Lewis (petitioner) listed his occupation as
“Ins. Agency [sic]”. Petitioner is in the insurance business and
sells life insurance, retirement group benefits, voluntary
benefits, and automobile and homeowner’s insurance. Petitioner
then lived in Moreno Valley, Riverside County, and drove to Los
Angeles and surrounding areas three to four times per week.
During 1993, he traveled about 7 months. At one time petitioner
had a log of his travels but lost it moving from one office to
another.
On their 1993 return, petitioners deducted $7,000 for car
and truck expenses on petitioners’ Schedule C, Profit or Loss
From Business. Petitioner claimed that he drove 25,000 miles for
business. On the same Schedule C, petitioners deducted $7,500
for rent expense for business property. On a Form 4797, Sales of
Business Property, petitioners reported $145,000 as the gross
sales price of a house at 5317 Mullen Avenue, Los Angeles,
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Last modified: May 25, 2011