Richard V. Frederick and Nancy M. Frederick - Page 6

                                        - 5 -                                         
          Expenses; (3) Schedule C for a “kitchen design” business                    
          attributable to Nancy M. Frederick; and (4) Schedule D, Capital             
          Gains and Losses.  On the Schedule D, petitioners claimed a                 
          $2,000 “non business bad debt”.  On the Schedule C, petitioners             
          reported income of $420, but claimed expenses totaling $12,763,             
          resulting in a net loss of $12,343.  All but $600 of the expenses           
          are identified and deducted on the Schedule C as “car and truck             
          expenses”.  On the Schedule A, petitioners claimed deductions for           
          what are described as “Form 2106 (Taxpayer)” expenses of $22,024            
          and “job hunting expenses” of $3,000.1  The Form 2106-EZ relates            
          to petitioner’s employment with CSR.  On that form petitioners              
          indicate that petitioner traveled 58,444 miles in connection with           
          his employment and claimed a deduction for that travel based upon           
          the standard mileage rate of $0.315 per mile.  They also listed             
          other unspecified “business expenses”, other than expenses for              
          meals and lodging, of $3,614 on the Form 2106-EZ.                           
               Petitioners’ 1998 return was prepared by petitioner.                   
          Included with that return is a Schedule C for a business named              
          Morgan Farms, the business of which is described as “raising                
          seeing eye dogs”.  Nancy M. Frederick is identified as the sole             
          proprietor of Morgan Farms.  As noted, one of petitioners’ golden           
          retrievers is named Morgan.  On this Schedule C, petitioners                


               1 References to deductions claimed on a Schedule A for any             
          year in issue do not take into account sec. 67.                             





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011