Debra D. McNair - Page 13

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          substantiation rules for business travel under section 274(d), we           
          hold that petitioner is not entitled to a business travel                   
          allowance in excess of the $293 allowed by respondent.                      
               In support of her claimed deduction for supplies,                      
          petitioner produced a receipt dated February 23, 1999, for                  
          purchase of a computer and inkjet printer for $2,348.98.                    
          Applying a 200 percent declining balance method of depreciation,            
          respondent allowed petitioner a $390 deduction for “supplies”,              
          including computer depreciation in 1999.  At trial the parties              
          stipulated orally that petitioner was entitled to a deduction for           
          the full $2,348.98 cost of the computer under section 179 for               
          1999.  We consider the stipulation binding and hold that                    
          petitioner is entitled to the $2,348.98 deduction under section             
          179 for 1999 but that no other amount is allowable for                      
          “supplies”.                                                                 
               Petitioner produced a $165 bill from Quick Refunds for the             
          preparation of her 1999 tax return, but the bill did not itemize            
          how much of the total bill was due to the preparation of her                
          Schedule C.  We allocate half the bill to preparation of                    
          petitioner’s Schedule C, and we hold that petitioner is entitled            
          to deduct $82.50 for tax preparation fees on Schedule C to her              
          1999 return.  The balance of the tax return preparation fee is              
          not deductible since petitioner claimed the standard deduction.             








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