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Other expenses:
Show booth expenses 500
Bank fees 120
Security 6% 57
Pest control 6% 43
Total expenses $1,743
Net Business Loss $5,442
As part of her business expenses, petitioner claimed a truck
and automobile expense of $273 on her original return and
increased such expense to $451 on her “amended return”.4
However, no actual log of expenses or mileage was kept as to
petitioner’s claimed automobile expense. Petitioner did keep
documents of jewelry shows that she claims she attended and
records of clients’ addresses that petitioner allegedly visited
on business matters. Petitioner did not keep a mileage log for
any business trips made in taxable year 1999. As to her other
business expenses, petitioner does not know how these expenses
and deductions were calculated.
Petitioner was disabled and unable to work from February to
June 1999. While on disability, petitioner spent no time on her
jewelry activity, the Port of Mystery. During taxable year 1999,
petitioner participated in only two shows to exhibit Port of
Mystery jewelry. The first show was a 3-day show which was held
in Sacramento, California; the second was a 2-day show which was
held in Marysville, California.
4Such amended return was not filed with the Internal Revenue
Service but was merely exchanged with respondent’s counsel as
part of the parties’ informal document exchange.
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