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Petitioner actually paid $3,399 in interest on his home mortgage.
On Schedule A, petitioner admittedly claimed a deduction of
$4,902 for home mortgage interest. On the editor Schedule C,
petitioner admittedly deducted another $500 for home mortgage
interest. These unwarranted deductions amount to a deduction for
home mortgage interest of $2,003 more than petitioner was
entitled to deduct. Petitioner also deducted car and truck
expenses of $4,000 on the editor Schedule C which related to
three personal vehicles used by petitioner to commute to his job
with Collegiate Services. In addition, petitioner deducted a
payment to repair one of his personal automobiles. Thus,
petitioner’s use of the Schedules C allowed him to claim
deductions for many nondeductible personal expenses and greater
deductions than were otherwise allowable.
With respect to petitioner’s purported Schedule C
activities, petitioner has not proved that he was engaged in
either activity with a profit objective. Petitioner did not
carry on either activity in a businesslike fashion. With respect
to both activities, petitioner had no books, records, or business
plans. Petitioner’s gross income for his tutor Schedule C and
his editor Schedule C consisted solely of wages he received in
his capacity as an employee of Collegiate Services and Carey
College, respectively. Petitioner had no gross receipts with
respect to either activity. Petitioner deducted personal
expenses nondeductible under section 262 on his Schedules C.
Petitioner claimed unwarranted deductions for home mortgage
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Last modified: May 25, 2011