-9-
within the meaning of section 162(a) and/or because these amounts
constitute capital expenditures.
Office Expenses
For 1995, petitioner deducted $14,065 of expenses, which he
personally bore after moving the office and the staff of Arbor
into a house he owned. The move was precipitated by
disagreements that had arisen between petitioner and Pomeroy.
Petitioner and some of the Arbor employees worked in the office.
Those employees were a bookkeeper, an administrative assistant,
an individual responsible for Medical/Medicaid costing reports, a
comptroller, a secretary, and another individual responsible for
maintenance, landscaping, computers, and marketing.
The expenses deducted by petitioner included costs of
furniture, asphalt repair, water softener, and other items.
Respondent asserts that these expenses belong to Arbor and thus
cannot be deducted by petitioner personally. Additionally,
respondent maintains that the following items should be
capitalized and, if deductible, depreciated:
Expense Amount
Table $171
Water softener 188
Asphalt repair 1,850
Furniture 338
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011