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record to substantiate petitioner’s claim that Dormer & Louver’s
1995 gross receipts were overstated. Moreover, petitioner did not
testify or offer any other evidence as to the cost of goods sold.
Thus, we are unable to estimate with a degree of reliability the
amount of Dormer & Louver’s cost of goods sold for 1995. Because
of petitioner’s inexactitude, we sustain respondent on this issue.
B. Schedule C Business Expense Deductions for 1993, 1994, and
1995
1. Rent Expenses
Petitioners claimed rent expenses of $20,510 for 1993, $20,510
for 1994, and $41,637 for 1995.
With respect to the rent expenses of $20,510 for 1993 and
$20,510 for 1994, petitioner testified that he believed these
figures were accurate. Petitioner’s testimony was not sufficient
to enable us to estimate the rent expenses. Indeed, petitioner did
not even testify as to whether rent was actually paid, nor did he
identify the lessor, the amount of rent, or the rental period.
Morever, petitioner disputed the claimed $41,637 rent expense for
1995 and in general, testified that the 1995 return was “blown out
of proportion.” Again, because petitioner presented no evidence,
documentary or otherwise, to substantiate the rent expenses, we
sustain respondent’s determinations on this issue.
2. Supplies
Petitioners claimed Schedule C expenses for supplies in the
amounts of $112,413 for 1993, $131,014 for 1994, and $5,203 for
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