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Itemized Deductions, and claimed deductions for unreimbursed
employee business expenses for the advertising expenses.
Petitioners reported income and claimed expenses for the
hairdressing activity on Schedule C, Profit or Loss From
Business, in the following amounts:
Type 1995 1996
Schedule A expenses:
Employee business expenses $29,585 $22,227
(advertising)
Schedule C income:
Gross receipts 3,600 3,600
Cost of goods sold (2,600) (2,600)
Gross income 1,000 1,000
Schedule C expenses:
Car and truck 6,900 6,510
Legal and professional services 100 100
Travel 40 40
Expenses for business use of home 293 666
Commissions and fees - 750
Advertising - 250
Insurance - 675
Interest - 1,400
Office expenses - 100
Taxes and licenses - 650
Unexplained expenses 18,532 100
Total 215,572 11,241
Net income (loss) (14,865) (310,141)
1 As noted above, petitioners conceded that they are
not entitled to the claimed “unexplained expenses” in 1995.
2 We note that the total of these items is actually
$15,865. The record does not provide an explanation as to
the discrepancy.
3 The actual amount should be ($10,241). The record
does not provide a basis for the discrepancy.
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