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Respondent determined a deficiency of $3,044 and an addition
to tax of $608.80 pursuant to section 6651(a)(1) in petitioner’s
Federal income tax for the taxable year 1997.
After a concession by respondent,1 the remaining issues for
decision are: (1) Whether petitioner failed to report a combined
total of $9,363 of gross receipts on two separate Schedules C,
Profit or Loss From Business; (2) whether petitioner is liable
for self-employment tax on the $9,363 of unreported income; and
(3) whether petitioner is entitled to Schedule C deductions in
connection with the operation of his barber shop for travel
expenses, meal and entertainment expenses, and business-related
vehicle expenses of $782, $60, and $567, respectively.
Some of the facts in this case have been stipulated and are
so found. The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time the petition
was filed, petitioner lived in Houston, Texas.
During the year at issue, petitioner owned a liquor store
and a barber shop located at 5822 and 5824 Martin Luther King
Boulevard, Houston, Texas, respectively. For the year at issue,
petitioner reported the results of both businesses on separate
Schedules C. On the liquor store Schedule C, petitioner reported
gross receipts of $53,491. On the barber shop Schedule C,
1 Respondent conceded that petitioner is not liable for
an addition to tax pursuant to sec. 6651(a)(1).
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