Michael A. McCann - Page 6




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          Memo. 1962-132; Gerald D. Roberts Consultants, Inc. v.                      
          Commissioner, T.C. Memo. 1991-490, affd. 981 F.2d 1251 (4th Cir.            
          1992); Houston v. Commissioner, T.C. Memo. 1983-635.                        
          Petitioner’s claims to deductions not previously conceded by                
          respondent are based solely on testimony that is not worthy of              
          belief, as set forth below.                                                 
          Inherently Improbable Claims                                                
               Petitioner claims that every expenditure that he made during           
          1996 was business related.  Justifying his deduction of                     
          everything that was charged to his credit card, petitioner                  
          testified:  “So it’s very difficult for me to distinguish between           
          a personal expense and business expense when it comes to a credit           
          card.  I charge most of my business expenses up on a credit card,           
          and I deduct whatever I have paid for that year, I deduct that.”            
          Explaining his deduction of items based on checks payable to                
          cash, he testified:  “So personal and business to me are one and            
          the same.  It’s no use to pay expenses and maintain two bank                
          accounts.”  When cross-examined about an alleged business loan,             
          he stated:  “The dental practice and dental lab is one and the              
          same; it is Michael McCann.”                                                
               Operating under his untenable premise, petitioner deducted             
          payments to his children, ages 11 and 13 during the year in                 
          issue, at the rate of his child support obligation, as dental lab           
          contract services expenses.  He deducted the cost of his                    






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