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lack of clear, convincing testimony and written substantiation,
respondent is sustained on this issue, and the entire $13,405
claimed as a deduction for charitable contributions on
petitioners’ 2000 Federal tax return is disallowed.
The third issue relates to Mr. Booker’s trade or business as
a tax return preparer and consultant. Mr. Booker did not
maintain an office, he merely visited his clients at their
business locations. He referred to his activity as a traveling
tax service. On Schedules C, Profit or Loss From Trade or
Business, of petitioners’ income tax returns for 1999 and 2000,
petitioners reported the following income and expenses from this
activity:
1999 2000
Gross income $23,171 $20,118
Expenses
Car and truck 13,515 12,651
Commissions and fees 419 629
Office expenses 3,338 3,505
Rent 891 1,010
Supplies 14,900 15,198
Taxes/licenses 360 360
Travel -0- 890
Meals and entertainment -0- 611
Utilities -0- 808
Wages 13,300 14,215
Other expenses -0- 420
Total expenses $46,723 $50,297
Net loss $23,522 $30,179
In the notices of deficiency, respondent disallowed
deductions for the following expenses:
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Last modified: May 25, 2011