- 5 - Item 1997 1998 Home mortgage interest $7,791 $5,266 Real property tax 600 600 DMV renewal fees 39 39 Petitioner, on the 1997 and 1998 Federal income tax returns, claimed that he was entitled to report income and expenses on a Schedule C because he was a “statutory employee” in accord with Rev. Rul. 90-93, 1990-2 C.B. 33. Petitioner reported gross receipts of $45,700 for 1997 and $42,940 for 1998 (the amounts reflected on the Forms W-2) on Schedule C of each return. Petitioner, for 1997 and 1998, reduced gross receipts by $6,170 and $6,012, respectively, as cost of goods sold. On each return, petitioner claimed that the cost of goods sold was an inventory adjustment for stale and promotional goods. On the Schedules C for 1997 and 1998, petitioner claimed the following deductions from gross income: Claimed deduction 1997 1998 Car and truck expense $1,890 $2,295 Legal and professional 800 750 Insurance 1,200 -0- Interest 3,615 5,361 Other 703 1,788 Respondent disallowed all of petitioner’s claimed Schedule C deductions for lack of substantiation.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011