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petitioner reported gross receipts of $45,297. For the year at
issue, petitioner’s reported combined gross receipts from both
businesses totaled $98,788. Using the bank deposits method,
respondent determined petitioner’s combined gross receipts to be
$108,151. Thus, respondent determined that petitioner failed to
report $9,363 of gross receipts from petitioner’s two Schedule C
businesses.
On the barber shop Schedule C, petitioner claimed various
business expense deductions that are at issue. Petitioner
deducted $2,072 of travel expenses on the barber shop Schedule C,
of which respondent allowed only $1,290. Thus, $782 of travel
expenses remains at issue. It has been stipulated that $689.17
of the travel expenses at issue related to expenses incurred with
respect to a fraternity convention petitioner attended in
Washington, D.C. The record is void of any evidence to establish
what the remaining $92.83 of the disputed travel expenses
represents.
Petitioner claimed a business expense deduction on the
barber shop Schedule C of $421 for meal and entertainment
expenses. Respondent allowed $361 of the total claimed
deduction. Thus, $60 of the claimed meal and entertainment
expense deduction remains at issue. It was stipulated that the
$60 deduction relates to meals purchased while attending the
fraternity convention.
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Last modified: May 25, 2011