- 19 - exclusively for his consulting activity as required to deduct home office expenses under section 280A(c). Petitioners contend that Hughs never asked them for the dimensions of their home or of the space in their home petitioner used for business. We disagree. Hughs did so in a letter to petitioners dated July 13, 2001. We conclude that petitioners may not deduct any amount for utility expenses for the years in issue. 7. Car and Truck Expenses Petitioners deducted car and truck expenses of $3,910 for 2000 and $4,209 for 2001 on the Schedules C for petitioner’s consulting activity. The only evidence on this issue is petitioner’s testimony that he visited stores that he thought might carry Double Otter’s products. We conclude that petitioners may not deduct any car or truck expenses for the years in issue. 8. Depreciation Petitioners deducted depreciation of $11,898 for 2000 on the Schedule C for petitioner’s consulting activity on the basis of his claimed purchase of (a) a computer for $3,999, and (b) an Internet service for $7,899. There is no evidence that petitioner paid or is entitled to deduct these amounts. We conclude that petitioners may not deduct depreciation for 2000.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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