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1999 Other Miscellaneous Deduction
On a Schedule A included with petitioners’ 1999 Federal
income tax return, petitioners claimed an “other miscellaneous”
deduction of $1,400. The expenditure to which the deduction
relates is the “additional” security deposit that petitioners’
landlord required with respect to the house they rented in
Virginia. As we view that matter, the security deposit required
for petitioners’ rented residence is a personal living or family
expense, the deduction of which is prohibited by section 262.
Respondent’s disallowance of this deduction is sustained.
1999 Schedule C Deductions
Petitioners’ 1999 Federal income tax return includes a
Schedule C for Morgan Farms, the business of which is identified
as “training/breeding leader dogs”. Petitioner is listed as the
sole proprietor of this business. According to petitioner’s
testimony at trial, petitioners intended to raise or train leader
dogs. Petitioner’s plan in some manner or another involved the
Leader Dog School for the Blind located in Rochester Hills,
Michigan and petitioners’ two golden retrievers. The deductions
claimed on the Schedule C are for travel expenses between
Michigan and petitioners’ residence in Virginia, and for
veterinary fees. Petitioner did not keep a mileage log or other
records related to the expenses incurred for these trips.
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Last modified: May 25, 2011