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not obtain or review copies of deposited items from all of the
financial institutions with which petitioner maintained accounts
during 1989. In preparing the original 1989 bank deposits
analysis, respondent failed to identify and subtract numerous
nontaxable items and did not adjust the analysis for all of the
income sources reported on petitioner’s 1989 tax return.
B. Schedule C Deductions
Petitioner deducted the following Schedule C expenses on her
Federal income tax returns for the years at issue:
Sch. C expense
category 1987 1988 1989 1990
Advertising $98 $160 $513 $2,384
Bank charges 469 1,035 120 120
Car & truck 6,672 8,807 5,354 3,240
Collection fees -- -- 850 --
Deprec./sec. 179 2,546 11,974 2,444 1,467
Dues & pubs. 2,337 3,867 2,675 4,095
Employee benefits 2,057 2,243 5,274 3,998
Insurance 514 3,677 3,745 3,565
Interest 10,034 3,053 2,926 2,070
Legal & prof. 5,104 7,239 6,128 13,536
Rent 11,460 10,256 9,706 13,334
Supplies 4,174 12,297 13,139 7,263
Taxes 1,235 4,908 5,051 10,601
Travel 1,039 -- 1,601 1,988
Meals & enter. 896 1,961 795 3,286
Utilities & telephone 838 3,784 6,152 3,515
Wages 13,991 19,203 26,238 29,054
Moving expense 3,258 -0- -0- -0-
Process services 2,482 2,495 915 1,822
Contract services 4,637 10,618 9,617 10,079
Court fees 2,002 7,458 9,104 6,699
Miscellaneous 355 6,424 3,343 2,427
Total Sch. C
deductions 76,198 121,459 115,690 124,543
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