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deduction for medical and dental expenses. Of the $4,815
deducted by petitioners for home mortgage interest, $4,146 was
allowed, and $2,788 of the $5,150 deducted as charitable
contributions was allowed. Of the $6,039 deducted as
unreimbursed employee business expenses, $1,736 was allowed. No
adjustment was made for the $753 in real estate taxes deducted by
petitioners. Thus, of the total $20,514 claimed as deductions,
respondent allowed deductions of $9,423 and disallowed $11,091.
All the amounts disallowed were for lack of substantiation.
With respect to Schedule C, involving petitioner's activity
as a minister, respondent's determinations were as follows, all
relating to expenses deducted:
Claimed on Allowed by
Return Respondent
Car and truck $2,031 $2,031
Commissions and fees 1,048 -0-
Insurance 250 250
Seminars 1,550 480
Robes, special gear, oils,
and incense 1,205 -0-
Educational, books, etc. 2,887 200
Totals $8,971 $2,961
No adjustments were made to petitioners' reported gross income.
The deductions also were disallowed for lack of substantiation.
As a result of the Schedule C adjustments, respondent determined
that petitioner realized a net profit from his ministry, thus
resulting in a liability for self-employment tax under section
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Last modified: May 25, 2011