- 12 -
1999 2000
Car and truck $ 5,650.00 $ 7,006.00
Supplies 1,242.23 1,267.07
Taxes/licenses -0- 360.00
Utilities -0- 300.00
Wages 113,825.00 9,415.00
Total concessions $20,717.23 $18,348.07
1In addition to the $13,300 claimed by petitioners as a wage
expense on their 1999 income tax return, respondent also conceded
an additional $525 claimed by petitioners at trial. See infra
note 6.
With respect to supplies, petitioners contended at trial
that they were entitled to amounts in addition to those
respondent conceded. Petitioners, however, presented no
documenting information to support their arguments. Moreover,
some of the purchases claimed, but not substantiated, included
computers and a copier, which would be capital assets subject to
depreciation. They also presented receipts and copies of checks
purportedly for supplies; however, those records do not satisfy
the Court that the amount claimed is in excess of what respondent
has conceded. Additionally, some of the other documentation
presented appeared to be for personal expenses, which are not
deductible under section 262.5 Petitioners, therefore, have not
established their entitlement to a deduction for supplies in
excess of the amounts conceded by respondent.
5Petitioners offered into evidence two manila envelopes
containing receipts purportedly for supplies. The envelopes
included, however, receipts for beer, milk, underclothes, and
nail polish remover, which, without explanation from petitioners,
appear to be personal expenses.
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