- 10 -
their joint return for 1991 was equal to the loss they claimed in
Schedule C of that return, reduced by $39 of taxable interest
that they reported in that return. The loss that petitioners
reported in their joint return for 1992 was equal to the loss
that they claimed in Schedule C of that return.
On December 27, 1996, petitioners filed a joint return for
taxable year 1993, which showed a loss of $6,520. On December
26, 1996, petitioners filed joint returns for taxable years 1994
and 1995, which showed losses of $1,729 and $35,532, respec-
tively. The loss that petitioners reported in their joint return
for each of the years at issue was equal to the total of the loss
claimed in Schedule C and the loss claimed in Schedule E, Supple-
mental Income and Loss (Schedule E), of each such return.
In Schedules C of petitioners’ joint returns for 1993, 1994,
and 1995, petitioners reported (1) Schedule C gross receipts of
$66,779, $112,610, and $152,870, respectively; (2) Schedule C
cost of goods sold of $24,121, $64,514, and $91,607, respec-
tively; (3) Schedule C gross income of $42,658, $48,096, and
$61,263, respectively; (4) Schedule C expenses of $46,510,
$48,813, and $93,953, respectively; and (5) Schedule C losses of
$3,852, $717, and $32,690, respectively. Included within the
claimed Schedule C cost of goods sold for the years 1993, 1994,
and 1995 was claimed cost of labor in the amounts of $20,766,
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