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printer for $287 and a 1972 Dodge van1.
Petitioners’ 1995 joint Federal income tax return was timely
filed. Petitioners did not elect to itemize deductions for
1995. Included with that return is a Schedule C for petitioner’s
business, identified as Micron Systems. The primary business
of Micron Systems is described on the Schedule C as
“developing/improving patentable products”. The following
items are reported on the Schedule C:
Income
Gross receipts $492
Returns/allowances 330
Cost of goods sold 3,502
Gross income (3,340)
Deductions
Advertising $320
Car and truck 1,264
Depreciation/sec. 179
expense deduction 10,312
Insurance 533
Office 1,565
Rent/lease 3,240
Supplies 1,008
Taxes/licenses 60
Meals/entertainment 641
Utilities 181
Other 1,020
Total expenses 20,144
Net Loss 23,484
1 According to the Form 4562, Depreciation and Amortization,
included with petitioners’ 1995 joint Federal income tax return,
the cost of the van was $2,189. According to the parties’
stipulation, the cost of the van was $952.
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Last modified: May 25, 2011