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8. Supplies
Petitioners presented an exhibit listing expenses for
patient supplies incurred in connection with Dr. Rinker’s medical
practice. The exhibit contained some of Dr. Rinker’s financial
records, invoices from a company named MedQuest Pharmacy, and two
checks written by Dr. Rinker. The exhibit showed total
expenditures of $8,117.80. Dr. Rinker testified that the records
related to purchases of drugs and hormones for her patients. At
trial, Dr. Rinker admitted that one of the two checks in the
exhibit was miscategorized and actually represented a personal
medical expenditure. The other check appears to duplicate a
payment recorded on one of the invoices.
A doctor’s expenditures for her patients’ medical supplies
are deductible under section 162. Sec. 1.162-6, Income Tax Regs.
Eliminating the payment for personal medical supplies and the
duplicate payment, we allow a deduction of $6,801.11 for Dr.
Rinker’s purchases from MedQuest.
Petitioners also presented an exhibit purporting to
substantiate office expenditures Dr. Rinker incurred during 1999.
This exhibit contained canceled checks that Dr. Rinker wrote out
to various payees, including consumer retailers such as Costco
and Office Depot, during 1999. The checks contained the
following information:
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