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Second, the invoice is made out to “24 Karat Gold Jean Co.” When
questioned about this document at trial, Mr. Mendez explained:
THE WITNESS: This--there were a man came to my
shop and asked me if I could sew his garment. And
somehow he start talking about, you know, our business
to start because sewing was to--it was no good anymore.
So we tried to do like partnership or so, like I
was wanting to sew the clothes that he--our products to
start our own business.
And we were going to call it 24 Karat Gold Jeans
or so, but we never get to that.
MR. SLOAT: So whose business--was that a
partnership between you and this other person?
THE WITNESS: Yes.
Because this testimony would seem to confirm that the
photography charges were incurred by a business entity other than
EJX (namely, a partnership between petitioners’ son and an
unidentified man), we must conclude that the amount cannot be
deducted on petitioners’ Schedule C.
G. Legal and Professional Services
As previously indicated, respondent has conceded that
petitioners are entitled to include on their Schedule C $725 for
legal and professional services. This position is based upon an
invoice and receipt reflecting payment for bookkeeping services.
We accept respondent’s concession.
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