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itemized deductions and entered amounts into the spreadsheet
software. He entered the totals from the spreadsheet software
for each category into the tax return preparation software.
Petitioners included a Schedule C, Profit or Loss From
Business, for petitioner’s consulting activity with their income
tax returns for 1999, 2000, and 2001. Petitioners reported that
petitioner had business expenses of $19,700 in 1999, $123,908 in
2000, and $13,532 in 2001 which resulted in losses of $10,600 in
1999, $96,642 in 2000, and $11,028 in 2001.
Petitioners deducted $5,500 that petitioners paid to Nelson
Hesse on February 8 and April 16, 1999, on their 1999 income tax
return in two places: On the Schedule C as a legal or
professional expense; and on the Schedule A, Itemized Deductions,
as a miscellaneous itemized deduction for attorney’s and
accountant’s fees.
Petitioners deducted their $900 charitable contribution
twice on their 2000 income tax return: As a contribution of
property; and as a contribution of cash.
Petitioners deducted $7,500, which they claim to have paid
to Special Friends in 2000 (but which they never paid), in three
places on their 2000 return: On the Schedule A as an itemized
charitable deduction; and on the Schedule C as an advertising
expense and as an office expense.
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