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claimed a $3,000 expense deduction under section 179 for a
computer and printer.
On her Schedule C for the property maintenance and cleanup
business, petitioner claimed a $7,500 expense deduction under
section 179 for a trailer ($2,000) and a lawn mower ($5,500).
Petitioner also claimed depreciation in the amount of $7,950 on a
Ford F150 truck ($2,950) and a GMC Suburban SUV ($5,000).
Additionally, petitioner claimed car and truck expenses in the
amount of $16,029 in respect of the Ford truck and GMC Suburban.
Petitioner claimed various other deductions, including one for
landfill expenses ($8,000) and another for contract labor
($7,000).
Respondent’s Notice of Deficiency
In the notice of deficiency, respondent determined as
follows:
Claimed Allowed Disallowed
Child Care Business
Computer/printer $3,000 --- $3,000
Property Main. &
Cleanup Business
Trailer (�179) 2,000 --- 2,000
Lawn mower (�179) 5,500 --- 5,500
Ford F150 (depreciation) 2,950 $2,950 ---
Suburban (depreciation) 5,000 --- 5,000
Actual operating expenses
(Ford & Suburban) 16,029 [1]8,341 7,688
Landfill 8,000 4,320 3,680
Contract labor 7,000 --- 7,000
[1]Ford F150 only. At trial, respondent conceded that petitioner is
entitled to an additional $656.77 in actual operating expenses for
the Ford F150.
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Last modified: May 25, 2011