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ministry”. On his return, petitioner reported passive income
from several sources in the aggregate amount of approximately
$65,000 (exclusive of tax-exempt interest and Social Security
benefits), and he claimed certain losses, including a “business
loss” in the amount of $38,923 from his “health, wealth and
healing ministry” activity. Petitioner reported a total tax
liability of $441 on his return.
In support of his claimed “business loss”, petitioner
attached to his return a Schedule C, Profit or Loss From
Business, for his “health, wealth and healing ministry” activity.
Petitioner reported no income on his Schedule C. In contrast,
petitioner claimed expenses in the aggregate amount of $38,923,
consisting of the following:
Car expenses $4,403
Legal & professional services 4,851
Supplies 1,487
Meals and entertainment 314
Other expenses
Business storage/rental $12,000
Postage 291
Printing/copies 93
Professional publications/
books/tapes/seminars 15,021
Telephone 463 27,868
Total expenses 38,923
According to petitioner, the deduction for “Business
storage/rental” represented monthly rent of $1,000 paid to his
mother for a dwelling unit used to store his “ozone machines”,
“wigglers”, oriental “heat type things”, and other product and
material for his “health, wealth and healing ministry” activity.
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Last modified: May 25, 2011