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Mr. Brown’s Schedule C for 1998 reflected the following:
Gross Income $1,800
Less:
Car and truck 2,496
Insurance
(other than health) 3,096
Rent or lease 6,002
Utilities 1,800
The insurance amount includes car, homeowner’s, and life
insurance expenses. The amounts claimed as a deduction under car
and truck and rent or lease are for expenses for a leased 1997
Acura. The amount deducted under utilities relates to expenses
from Mr. Brown’s home office. Petitioners also deducted $7,375
in charitable contributions.
On April 15, 1999, petitioners timely requested an
extension for the filing of their 1998 return. The filing date
was extended to August 15, 1999. Petitioners’ 1998 return was
filed on January 25, 2001.
Upon examination, respondent disallowed the following
amounts claimed as deductions on Mr. Brown’s Schedule C: $2,042
of the car and truck expenses; $2,377 of the insurance expenses;
$4,530 of the rent or lease expenses; and the entire $1,800 of
utilities expenses. Respondent also disallowed $1,600 of the
claimed deduction for charitable contributions.
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Last modified: May 25, 2011