- 12 - which are not deductible under section 262. As to the documentation that represented business expenses, petitioner failed to establish that the receipts that related to deductible expenses were not already allowed in the notices of deficiency by respondent. Consequently, for the years 1993 and 1994, the Court sustains respondent on the disallowed Schedule A and Schedule C expenses. Petitioner’s critical care nursing activity for 1995 and 1996 needs to be considered separately for the following reason. The parties stipulated that petitioner earned “only W-2 wages” during 1995 and 1996, which implicitly suggests that petitioner did not earn any income in her self-employed critical care nursing activity during these 2 years. In the notices of deficiency, respondent did not allow or concede any deductions for trade or business expenses for this activity for 1995 and 1996. Nonetheless, in spite of the stipulation referred to, petitioner reported gross receipts of $4,684 and $8,173, respectively, for 1995 and 1996, on Schedule C of her returns for those years in connection with her critical care nursing activity. In the notices of deficiency, these income amounts were not removed, and all of the claimed expenses were disallowed. The Court concludes that the stipulation of the parties on this issue is in error, since petitioner did earn gross income during 1995 and 1996 from her critical care nursingPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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