- 36 -
expenses are substantiated and would otherwise be deductible by
petitioners. Respondent allowed petitioners total itemized
deductions of $10,127 computed as follows:
Expense Amount
Medical expense
Total medical expenses $1,916
Less 7.5% AGI (31,451)
Medical expense deduction -0-
Taxes 558
Home interest expense 3,712
Contributions 14,702
Misc. expenses
Total misc. expenses 3,559
Less 2% AGI (8,387)
Excess misc. expense deduction -0-
Total 18,972
Less applicable limitation1 (8,845)
Total itemized deductions 10,127
1Computed on adjusted gross income of
$419,340.
The OMK Company Trust claimed total deductions of $129,899,
including $3,729 for fiduciary fees, $56,871 for charitable
contributions, $900 for attorney’s, accountant’s, and return
preparer’s fees, $15,970 for continuing education, $6,037 for
travel expenses, $448 for dues and subscriptions, $2,461 for
medical, $2,224 for investment expenses, $6,457 for publishing
costs, $6,724 for rentals, $760 for repairs and maintenance,
$12,041 for supplies, $1,845 for 50 percent of the cost of meals,
$4,043 for other trust expenses, and $9,389 for a net operating
loss. The OMK Family trust claimed deductions of $120 for
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