- 2 - Respondent determined a deficiency in petitioner’s Federal income tax in the amount of $11,834 for the taxable year 2000. This is a substantiation case. After a concession by respondent, the issue for decision is whether petitioner is entitled to various Schedule C deductions in amounts greater than those allowed and conceded by respondent. We hold that petitioner is entitled to the deductions to the limited extent provided herein. Background Some of the facts have been stipulated, and they are so found. At the time that the petition was filed, petitioner resided in Houston, Texas. During 2000, the taxable year in issue, petitioner was self- employed. She owned and operated two businesses: a child care business and a property maintenance and cleanup business. Child Care Business Petitioner operated the child care business out of her residence. She generally had 8 to 12 children in her care during the day throughout the workweek. The children included infants, preschoolers, elementary school students, and a 13-year-old. The children would be dropped off at petitioner’s home by their parents on their way to work, and would be picked up by their parents on their way home. After dropoff by the parents in the morning, petitioner would drive the older children to school;Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011