- 3 -
petitioner’s law practice are reported. Petitioner maintained a
checking account for his law practice (the business account),
kept individual client records, and saved receipts for expenses
incurred in his law practice. Otherwise he kept no formal books
of account or other accounting records to track income earned and
expenses incurred in his law practice.
Petitioners own numerous residential real estate properties
that were held for rent or rented during the years in issue (the
rental properties). Some of the rental properties were rented
pursuant to Federal or State rent subsidy programs. Petitioners’
Federal income tax return for each year in issue includes a
Schedule E, Supplemental Income and Loss, on which income and
expenses attributable to the rental properties are reported.
Petitioner used the business account to pay expenses incurred in
connection with the rental properties. He also saved expense
receipts. Other than the business account and the expense
receipts, petitioner kept no formal books of account or other
accounting records to track income earned and expenses incurred
in connection with the rental properties.
Petitioners also maintained a joint checking account during
the years in issue (the joint account). Expenses related to
petitioner’s law practice and the rental properties were not paid
from the joint account. However, some personal expenses were
paid with checks drawn on the business account.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011