- 3 - withheld for 1998 as $3,120, and $730, respectively. Petitioner properly reported $50,334 of wage income and $2,199 of Federal income tax withheld on his 1998 return. Petitioner claimed the $3,199.72 Social Security tax withheld and the $729.91 Medicare tax withheld as a credit for excess Social Security payments and as a credit for “other payment”, respectively, on his 1998 return. Respondent disallowed these purported credits. Petitioner filed a Schedule C for his machine shop activity as part of his 1998 return. During 1998, petitioner reported gross income of zero with respect to his machine shop activity. On his Schedule C, petitioner claimed the following deductions: Expense Amount Car and truck $575 Depreciation 4,859 Office expense 7,900 Rent or lease 200 Repairs and maintenance 99 Taxes and licenses 876 Utilities 295 Other expenses: Membership/Dues 30 Bank 222 Trucking supplies, etc. 2,453 Trucking daily credit 10,255 Uninsured damages 2,082 Losses brought forward 13,532 Total 43,378 Respondent determined that all of the car and truck expenses, trucking supplies expenses, and uninsured damages were employee business expenses incurred by petitioner as a cross-Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011