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in the case of an expense which does not exceed an
amount prescribed pursuant to such regulations. * * *
In support of their claims to deductible car and truck
expenses, petitioners presented a copy of a calendar for 1997,
some bills and statements reflecting purchase of gas and rentals
of automobiles, bills for insurance on three vehicles, and repair
bills. The calendar showed mileage for the first 3 months of the
year. To support his claim that he engaged in various marketing
activities during 1997, Mr. Jacobsen presented copies of
schedules of activities for the years 2000 and 2001 and testified
that he engaged in the same type of activity in 1997.
Mr. Jacobsen testified:
THE COURT: I see your Schedule C reported no
income for 1997 from your real estate business. Why is
that?
THE WITNESS [Mr. Jacobsen]: Well, between running
between the hospitals and trying to do things and
getting referrals, I had to pass jobs off, or prospects
off, and those things fell through most of the time.
It was a tough year.
THE COURT: Tell me how you used your car again.
I mean how did you come up with the amount that’s
deducted. $16,507 is a lot of car and truck expense
and–-
THE WITNESS: I basically lived in my car.
THE COURT: Well, you were running to the hospital
a lot. How did you distinguish between hospital runs
and business runs?
THE WITNESS: Well, logistically I went from my
house to the hospital and then from there on to the
office or beyond, so that that mile was inclusive.
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