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* * * * * * *
So for these taxable years like 1999, 2000, I’ve
estimated about 40 percent of the space--40 percent as
I had put in my returns--was basically used for
business purposes. So it’s here I have been like
allocating a certain amount of money, loaning money to
the S corporation--around like $35,000 a year--to pay
for the equipment and for the bond, so basically
accumulation of the capital.
* * * * * * *
So I had to amortize my expenditures: Masters,
Ph.D., and the B.S., which they run approximately
$150,000. What you do, of course, when you have a
capital expenditure you don’t deduct it. That’s an
expense, which basically you amortize it a minimum of
60 months over five year period.
* * * * * * *
I put about what, $10,000 a year, basically for
future medical bills. * * *
* * * * * * *
Even if I don’t provide let’s say all the Shop
Right or King Supermarket receipts, all of them or the
originals, still if you use the Cohan rule that’s all
reasonable. Twenty dollars a day, 30 days is $600 per
month. The same thing for electric and natural gas.
* * * * * * *
You cannot function without eating food or without
electricity. I want to mention this, I was reading, I
was doing the research. Section 262 for personal
living and family expenses, this is for businesses and
corporations.
* * * * * * *
Anyway, I mean we’ve read the Supreme Court
decisions and clearly it says that in order to have
taxable income you have to receive undeniable net
income, accession to wealth. That’s net income, it’s
not gross income. It has to be clearly realized and
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