- 13 -
Jones v. Commissioner, T.C. Memo. 1994-230, affd. without
published opinion 68 F.3d 460 (4th Cir. 1995); see O’Rourke v.
Commissioner, supra.
Mrs. Dunnegan testified that she was intensely involved in
the operation and management of the fireworks businesses. She
spent approximately 25 to 40 hours per week performing services
for the Schedule C businesses, such as bookkeeping, placing
orders to suppliers, and packing and shipping orders.
Petitioners listed both Mr. Dunnegan and Mrs. Dunnegan as the
proprietors of the fireworks businesses on their Schedules C for
1993. We conclude that both spouses were carrying on the
fireworks business and 50 percent of the net profits and losses
from the fireworks businesses should be attributable to
Mrs. Dunnegan for purposes of self-employment tax under section
1401.
III. Business Expenses
The last issue is whether the $5,000 paid by petitioners to
Big Brothers/Big Sisters is deductible as a business expense
under section 162 or as a charitable contribution under section
170. Petitioners claim that they are entitled to the deduction
for business expense under section 162 for the payments because
they were made in exchange for promotional services and labor
rendered to J&G Enterprise.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011