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Rents Received: $39,814
Expenses:
Advertising 2,355
Repairs 2,921
Utilities 5,316
Income 29,222
On the Schedule C, petitioner described his “Principal
business or profession” as “104 West Main St.”, which is the
address of the apartment building. He made no entry on the line
designated “Business address”. There is no income reported on
the Schedule C, but the following deductions are claimed:3
Advertising $ 90.00
Car and truck 900.15
Employee benefit programs 143.79
Mortgage interest 1,426.48
Other interest 4,560.00
Legal and professional
services 29,126.79
Repairs and maintenance 2,848.74
Taxes and licenses 1,690.00
Travel, meals and
entertainment 373.88
Total expenses/net loss 41,159.83
Included in the deduction for legal and professional services is
the $10,000 fine imposed as a result of petitioner’s conviction
for filing a false 1984 Federal income tax return.
The sale of the condominium is reported on the Form 2119.
According to that form, petitioner realized a $17,500 gain on
the sale, which gain is included as long term capital gain in the
3 According to the form, petitioner reported Schedule C
items in accordance with the cash method of accounting.
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Last modified: May 25, 2011