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as drafting a business plan or long-term financial analysis of
the profitability of Aspiring Artists.
As a result of petitioner’s efforts and Jennifer’s hard work
and skill, the New York Theatre Ballet (NYTB) extended her an
offer of employment. Jennifer’s contract, entered into in August
of 1997, engaged her as an apprentice dancer from August through
December of 1997. The period of the contract included training
and rehearsal time as well as 3 weeks of “The Nutcracker Ballet”
performances. Both petitioners and Jennifer were overjoyed with
Jennifer’s success.
On April 5, 2000, respondent sent to petitioners, by
certified mail, a notice of deficiency. The notice of deficiency
informed petitioners that respondent determined that the
following $13,889 of Schedule C expenses petitioners deducted for
expenses related to their daughter’s dance education would not be
allowed:
Schedule C expenses deducted by petitioners Allowed
Mileage $3,640 $ 0
Advertising 200 200
Wages 525 525
Cost of goods sold 150 0
Depreciation 54 54
Employee benefits 900 0
Supplies 1,500 1,500
Meals 900 0
Utilities 500 500
Education and medical (other) 1,557 0
Travel 7,871 1,129
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Last modified: May 25, 2011