- 14 - to substantiate her claimed car and truck expenses. Mrs. Butler, however, provided the Court with a list of her purported business expenses. Also, included was a copy of a check made payable to “WV Board of Respiratory Care” of $55. We believe Mrs. Butler’s testimony that she incurred other license expenses and continuing education credits of $95 and $260. However, when questioned as to the amounts claimed for the remaining business expenses on her Schedule C, Mrs. Butler’s testimony was vague. Furthermore, with regard to Mrs. Butler’s deductions for her business use of her personal residence, section 280A is controlling. Under section 280A, the general rule is that, except as provided by this section, no deduction is allowable unless an allocable portion of the residence is exclusively used as the principal place of any business activity conducted by the taxpayer. All deductions allowable to the business use of the residence must be used to offset the amount of gross income from the business activity and is subject to the 2-percent floor on miscellaneous itemized deductions. Sec. 280A(a), (c)(1), (c)(5). We have taken into consideration Mrs. Butler’s testimony and the handwritten list of claimed Schedule C expenses. We conclude that petitioners are entitled to a business deduction totaling $410. However, we cannot estimate any amounts for petitioners’ other business deductions under the Cohan rule. Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011