- 17 - exhibits was mistakenly included and did not represent a payment for professional or office services. The checks for secretarial services related to Dr. Rinker’s medical practice amount to $1,442. Petitioners are entitled to a deduction under section 162 for that amount. The checks for bookkeeping and accounting services add up to $2,582. Dr. Rinker testified that she paid some of these amounts for services performed for her medical practice, but petitioners offered no evidence as to what portion of the payments related to services performed for her in her personal capacity. On the basis of Dr. Rinker’s testimony, we believe that at least half of the fees related to Dr. Rinker’s medical practice. Under Cohan v. Commissioner, 39 F.2d at 544, we allow a deduction of $1,291. 5. Medical Management Solutions Dr. Rinker testified that she engaged an outside billing service called Medical Management Solutions to collect and manage payments from medical insurance companies. At trial, petitioners presented an exhibit listing payments to Medical Management Solutions. Petitioners also presented an additional check made out by Dr. Rinker to the company which was not included in the exhibit. The payments to Medical Management Solutions for billing services are deductible business expenses under section 162. We therefore allow a deduction for the amounts shown by the exhibit and the additional check, totaling $11,300.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011