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that the claimed expenses were paid or incurred during 1995 and
that they were ordinary and necessary to Michael’s business.
Respondent further explained his adjustment disallowing the
claimed deduction for Michael’s business use of his home on the
ground that certain prerequisites to that deduction had not been
established. On brief, respondent concedes (and we agree) that
the Careys may deduct the following expenses, on the basis of
evidence they presented:
Mortgage interest $8,785
Property rental 22,200
Supplies 684
Utilities 609
Wages 102,311
Food 19,377
Medical services 150
Maintenance/ops 3,460
Telephone 315
Total 157,891
Respondent argues that the Careys have failed to prove any
additional expenses. In the main, we agree with respondent. At
the trial of this case, the Court accepted into evidence two
exhibits offered by the Careys, together consisting of over 300
pages showing photocopies of checks and other documents relating
to Sunshine and Rancho. In each case, the checks and other
documents appear to relate to only a portion of 1995.
Particularly with regard to the Rancho checks and documents, much
of the data entered thereon is illegible. The Court instructed
the Careys to schedule that data and, on brief, make proposed
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