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Respondent limited petitioners deductions for cash
charitable contributions to those amounts evidenced by canceled
checks as follows:
1993 $75
1994 10
1995 60
For the $500 noncash charitable contribution claimed on
their 1995 return, petitioners submitted documentation consisting
of a Salvation Army receipt for one refrigerator and four bags of
clothes. Petitioners attributed a value of $500 to the total
contribution. Respondent reduced the value of the contribution
to $350: $150 for the refrigerator and $50 for each bag of
clothes.
The reduction of the charitable contribution deduction for
1995 reduced petitioners' total itemized deductions to $6,481.
The standard deduction for joint filers in 1995 was $6,550.
Respondent applied the higher amount of the standard deduction in
calculating the tax due for 1995.
Additionally, petitioners claimed various deductions on
their 1993, 1994, and 1995 Schedules C for their tax preparation,
stock brokerage, and horse riding instruction activities.
Respondent allowed deductions for the business expenses that were
sufficiently documented by canceled checks. Respondent
disallowed many of the deductions, including a $287 deduction for
self-employment health insurance, because petitioners failed to
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