Perry H. Kay, Sr. - Page 4

                                        - 4 -                                         
          whom petitioner maintained a homeowner’s insurance policy during            
          1998.  On October 12, 1998, State Farm settled the claim with               
          petitioner for $857.12.  On October 29, 1998, petitioner retained           
          a contractor to replace rotten decking and install a new roof on            
          petitioner’s house.  For the year at issue, petitioner claimed a            
          casualty loss deduction on Schedule A, Itemized Deductions, of              
          $5,151.19 related to the damage caused by the storm.                        
               In the notice of deficiency, respondent disallowed the                 
          following:  (1) The entire section 179 expense deduction claimed            
          on Schedule C because petitioner “did not establish the                     
          percentage of business use” for the van and failed to provide               
          other supporting information required to substantiate the                   
          deduction; (2) the business-related travel expense for the van              
          claimed on Schedule C because petitioner failed to provide the              
          supporting information necessary to establish that the deduction            
          was “(a) incurred during the taxable year, and (b) an ordinary              
          and necessary business expense”; (3) expenses claimed on Schedule           
          C for (a) production and management fees, and (b) music educator            
          and professional convention expenses because petitioner did not             
          substantiate that these expenses were paid or incurred during the           
          taxable year and were “ordinary and necessary” business expenses;           
          and (4) the entire casualty loss deduction claimed on Schedule A            
          because petitioner “did not establish that (a) a casualty or                
          theft occurred, and (b) any loss was sustained”.                            

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