- 7 - Petitioner has 24-hour access to the office at NIRC. NIRC does not require petitioner to maintain an office in the home. Petitioners did not keep receipts or records for any of their expenses associated with the office in the home, and petitioners used an inflated basis in calculating depreciation expenses. Petitioners claimed deductions for expenses relating to maintaining the office in the home in 1996 and 1997. On their 1991, 1994, and 1995 Federal income tax returns, petitioners claimed deductions for estimated employment expenses, investment expenses, charitable contributions, and office in the home expenses that are similar to those claimed during the years in issue. Petitioners prepared all of the tax returns themselves without the assistance of a paid tax return preparer. Respondent examined petitioners’ 1991 income tax return and issued a notice of deficiency. Petitioners filed a timely petition with the Court, and, on October 20, 1994, a stipulated decision was entered. OPINION Respondent argues that petitioners are not entitled to the deductions claimed on their returns because petitioners did not provide any substantiation for the amounts reported. Petitioners assert that they are entitled to the claimed deductions; however, for the most part, they offered no books or records to prove that they expended the amounts in question. Only petitioner Aziz A.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011