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Petitioners contend that, for 2000, they may deduct $16,500
for legal fees paid by TruGreen to Nelson Hesse, $54,000 for loan
repayments to Davoli and Pekas, $250 to Richard Weldon, and
$221.45 to an unidentified person. We disagree. Petitioners may
not deduct as a business expense TruGreen’s payment of $16,500 to
Nelson Hesse or $54,000 of loans repaid to Davoli and Pekas.
Petitioners did not show that they paid the $250 or the
$221.45 or that those amounts were business expenses. We
conclude that petitioners may not deduct any amounts for legal
and professional expenses for the years in issue.
3. Supplies Expenses
Petitioners claimed deductions for supplies expenses of
$2,856 for 1999, $4,962 for 2000, and $729 for 2001 on the
Schedules C for petitioner’s consulting activity. Petitioners
contend that he paid $2,535 in 1999 to buy a computer.
Petitioner was billed $2,535 for that computer. However, there
is no evidence than petitioners paid that amount or to what
extent he used it for his consulting activity.
Respondent conceded that petitioners may deduct $92.49 in
1999 for a subscription to Media Week magazine.
Petitioners offered no evidence substantiating their
deductions for supplies for 2000 or 2001. We conclude that
petitioners may not deduct more for supplies expenses than
respondent allowed.
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