David D. Brayshaw and Nora D. Brayshaw - Page 5





                                        - 4 -                                         

          including the returns and allowances and the expenses for                   

          business use of the home.  Respondent did not adjust the income             

          reported on either schedule.                                                

          Ms. Brayshaw’s Schedule C                                                   

               The first Schedule C listed Ms. Brayshaw as the proprietor             

          of a business engaged in medical consultation.  This schedule               

          listed the following amounts:                                               

               Gross receipts                                                $11,400  
               Expenses                                                               
                    Car and truck                                  $2,018             
                    Depreciation and section 179 expense            2,248             
                    Mortgage interest                               5,100             
                    Legal and professional services                    45             
                    Office                                            418             
                    Repairs and maintenance                            80             
                    Supplies                                          150             
                    Taxes and licenses                                810             
                    Total expenses                                          (10,869)  
               Net profit                                                        531  
          Petitioners have conceded that this schedule should not have been           

          filed because Ms. Brayshaw had ceased conducting the medical                

          consultation business by 1996.  Allegedly, the gross receipts               

          listed on the Schedule C are amounts which represented lease                

          payments made by Mr. Brayshaw to Ms. Brayshaw for use of a                  

          vehicle held by petitioners as community property (a Jeep Grand             

          Cherokee), and the expenses are related thereto.2                           

               In light of petitioners’ concession, we sustain respondent’s           

          disallowance of all the deductions claimed with respect to this             


          2It is unclear how the mortgage interest, office expenses,                  
          and legal and professional services relate to the rental of a               
          Jeep Grand Cherokee.                                                        







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011