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9. Other Expenses
Petitioners deducted miscellaneous expenses of $4,240 for
1999, $3,431 for 2000, and $3,360 for 2001 on the Schedules C for
petitioner’s consulting activity. These amounts include payment
for telephone service. Respondent concedes that petitioners paid
$3,101.61 for telephone service in 1999 but contends that
petitioners may not deduct any of this amount. We agree because
petitioners provided no basis to allocate between business and
personal telephone use. See sec. 262(b) (charge for basic
telephone service to a residence is deemed personal).
Petitioners contend that they may deduct payments for computer
printing supplies. We disagree because there is no evidence
showing how much petitioners paid for computer printing supplies.
Respondent concedes that petitioners paid and may deduct
$285.35 for Internet service in 2000.
Petitioners deducted for 2000 insurance expense of $955,
rent or lease payments of $3,720, and repairs and maintenance of
$1,256. Respondent contends that petitioners may not deduct any
of these amounts. We agree because there is no evidence
substantiating these deductions.
We conclude that petitioners may not deduct more
miscellaneous expenses on the Schedules C than allowed by
respondent.
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