- 18 -
of less than 1 year are currently deductible, Clemons v.
Commissioner, T.C. Memo. 1979-273, the cost of tools with a
useful life that exceeds 1 year are recovered by depreciation,
secs. 167(a) and 168(b).
Petitioners offered no evidence about the type, expected
useful life, or cost of each tool acquired. Consequently, we
have no basis for determining which costs might be currently
deductible or for estimating appropriate depreciation deductions
for tools with useful lives greater than 1 year.
Taxes and Licenses
On their 1995 return, petitioners claimed a $1,776 deduction
for taxes and licenses. In the notice of deficiency, respondent
allowed $1,024. On the basis of our detailed review of the
record, we find that petitioners are entitled to a deduction of
$1,105 for taxes and licenses.
Utilities
On their 1995 return, petitioners claimed a $646 deduction
for utilities. In the notice of deficiency, respondent allowed
$404. Petitioners have not established that they are entitled to
a deduction for utilities expenses greater than respondent has
allowed.
Cat Food
On brief, respondent concedes that petitioners are entitled
to a $300 business expense deduction for cat food that
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011