Efrain J. and Josefina Xuncax - Page 4




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          disallowed in full or in part amounts claimed by petitioners for            
          cost of goods sold and business expense deductions, as follows:             

                   Item           Amount Claimed on    Amount Allowed Per             
                                        Return        Notice of Deficiency            
          Cost of Goods Sold            1 $274,109             $137,055               
          Advertising                        1,329                    0               
          Car & Truck                        8,665                    0               
          Commissions                        6,786                    0               
          Depreciation                      13,352               13,352               
          Insurance                          4,967                    0               
          Legal & Professional               8,012                    0               
          Office Expense                     4,625                    0               
          Rent                              31,200               24,000               
          Repairs                           29,652                    0               
          Supplies                          46,712                    0               
          Taxes & Licenses                     803                    0               
          Travel                             8,623                    0               
          Meals                              2,006                    0               
          Utilities                          9,974                    0               
          Wages                          6,721                 78,100                 
          TOTAL                          $457,536              $252,507               
               1 Petitioners’ return shows this figure as comprising                  
               $50,925 for “Cost of labor” and $223,184 for “Other                    
               costs”.                                                                
               Additionally, since issuance of the notice of deficiency,              
          respondent has conceded that petitioners are entitled to deduct             
          as a Schedule C legal and professional expense $725 paid for                
          bookkeeping services.                                                       






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Last modified: May 25, 2011