- 3 - Petitioners reported income of $2,424 in 1999 and $2,679 in 2000 from the Schedule C activity.2 The car expenses were computed by using the standard mileage expense method. See Rev. Proc. 98-63, 1998-2 C.B. 818 ($.31 per mile); Rev Proc. 99-38, 1999-2 C.B. 525 ($.325 per mile). The depreciation deduction claimed for the 1999 taxable year was for automobiles for which deductions using the standard rate were claimed, and petitioners concede that they are not entitled to that deduction. On the 2000 tax return, petitioners deducted the mortgage interest expense also as an itemized deduction, and they concede that the deduction was properly disallowed on the Schedule C. The activity reported on the Schedules C related to petitioner Terri L. Pyrdum (hereinafter petitioner). Petitioners divorced in 2001, and petitioner is now married to Allan Brittain (Mr. Brittain). During 1999 and 2000, petitioner was employed full time as an inside sales representative by Holt Specialty Equipment (Holt), a machinery manufacturer. As a sales representative, she traveled to various machinery trade shows in the region. Holt reimbursed petitioner for all of her travel expenses incurred on behalf of Holt. During the years in issue, petitioner was also associated with Key Credit Corp. (Key Credit), a financing company. Key 2 In the notice of deficiency respondent increased petitioners’ income by these amounts. Respondent concedes that these items of income were included in the returns.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011