Curtis Muhammad - Page 3

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               Respondent determined a deficiency in petitioner’s 2002                
          Federal income tax of $4,279.  After concessions by the parties,2           
          the issues for decision are whether petitioner can deduct:  (1)             
          $6,500 on Schedule A, Itemized Deductions, for cash charitable              
          contributions; (2) $1,800 on Schedule C, Profit or Loss From                
          Business, for legal and professional expenses; (3) $2,400 on                
          Schedule C for rental expenses; and (4) $2,155 on Schedule C for            
          business use of the home.                                                   
               Some facts have been stipulated and are so found.  The                 
          stipulation of facts and the attached exhibits are incorporated             
          by this reference.  When the petition was filed, petitioner                 
          resided in West Chester, Pennsylvania.                                      
               Petitioner earned a biomedical engineering degree from a               
          community college in, or about, 1990 and also graduated from                
          Lyons Tech in 1978.  While he served in the Air Force, petitioner           
          worked as an accountant.  During the taxable year 2002,                     
          petitioner worked full time for SEPTA and also worked as a                  
          financial adviser for Waddell & Reed.                                       
               Petitioner timely filed his 2002 Federal income tax return             
          via electronic filing.  Petitioner’s return for 2002 was prepared           


               2 The parties stipulated that the proper mortgage interest             
          and real estate taxes on Schedule A, Itemized Deductions, are               
          $5,143 and $1,178, respectively, and that the proper mortgage               
          interest and real estate taxes on Schedule E, Supplemental Income           
          and Loss, are $4,494 and $1,254, respectively.  At trial,                   
          petitioner also conceded that he is not entitled to a deduction             
          for a $500 noncash charitable contribution.                                 




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