Karen Boyd - Page 7




                                                - 7 -                                                  
            business.                                                                                  
                  The rule for substantiating car and truck expenses is clear.                         
            Petitioner is required to provide a mileage log or other                                   
            corroboration sufficient to establish the amount, time, place,                             
            and business purpose of the expense.  At trial, petitioner failed                          
            to provide any corroborating evidence, besides her self-serving                            
            testimony.  The Court has discretion to disregard testimony which                          
            we find self-serving.  Niedringhaus v. Commissioner, 99 T.C. 202,                          
            212 (1992).  Accordingly, petitioner is not entitled to deduct a                           
            car and truck expense for the year in issue.                                               
                  Petitioner claimed an advertising expense of $1,490.  At                             
            trial petitioner offered into evidence an invoice from Daily                               
            Journal Corporation, the local daily legal newspaper, showing                              
            $1,218.76 in advertising services rendered.  The advertisement                             
            placed generally stated “Learn Word Perfect”.  We find that this                           
            invoice substantiates petitioner’s advertising expense of                                  
            $1,218.76, and, therefore, petitioner is entitled to deduct this                           
            amount.                                                                                    
                  Section 167(a) permits a depreciation deduction for the                              
            exhaustion and wear and tear of property used in a trade or                                
            business.  In calculating the depreciation deduction petitioner                            
            included:  Fax machine ($300), printer ($700), and computers                               
            ($2,500).                                                                                  
                  At trial petitioner offered into evidence a receipt from                             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011