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2. “Studio”
Petitioner referred to the second of his two rooms as a
“studio”. This room measured 11 feet 2 inches in width by 15
feet in length. The room included an electronic musical
keyboard, sound recording equipment, loud speakers, a computer
(with a musical instrument digital interface) and monitor, and
shelves containing a multitude of music tapes. The room also
included a folding sofa, which petitioner would use as a bed if
he worked late at night composing music. Finally, there was a
closet, which petitioner used to store both personal and business
belongings.
Petitioner exclusively used a clearly defined portion of
this room, equal to three-quarters of its square footage, to: (1)
Prepare lesson plans and perform other tasks related to his
duties as the administrator/teacher at the Pasadena Chinese
School; (2) compose music for CIM Music Productions; and (3)
teach most of his Saturday violin lessons.
F. Loan Repayment
Petitioner maintained an account with Providian Bank in the
form of a line of credit. Petitioner borrowed against this line
of credit in order to pay operating expenses of the Pasadena
Chinese School. Petitioner deducted such operating expenses on
his Schedule C, which deductions were allowed by respondent.
In March 1997, petitioner borrowed $5,000 from his mother.
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