Katumba P. Kashama - Page 3

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               Respondent determined a deficiency of $2,320 in petitioner’s           
          Federal income tax for the year 2001.  The sole issue for                   
          decision is whether petitioner is entitled to certain deductions            
          claimed on Schedule C, Profit or Loss From Business, for the year           
          in question in excess of amounts allowed by respondent.                     
               Some of the facts were stipulated.  Those facts, with the              
          annexed exhibits, are so found and are made part hereof.                    
          Petitioner’s legal residence at the time the petition was filed             
          was Indianapolis, Indiana.                                                  
               Petitioner is an independent contractor and works on a                 
          commission basis as a courier.  His sole client is a delivery               
          service called Pillow Express.  Although petitioner was available           
          to make out-of-State deliveries, his primary work for Pillow                
          Express was local and in-State deliveries.  Petitioner drove one            
          of the two cars he owned for the majority of the deliveries;                
          however, petitioner never made out-of-State deliveries using his            
          own car.  If he had to deliver anything outside of Indiana,                 
          petitioner would either rent a car or drive a van owned by Pillow           
          Express.  In addition, when petitioner delivered large items                
          locally, he would use one of the vans owned by Pillow Express.              
          Pillow Express did not charge petitioner when he had to use a               
          company van, but it also did not reimburse petitioner for the               
          cost of using his own vehicle to make some of the deliveries.               







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