- 10 - Schedule C Losses Petitioner submitted a Schedule C, Profit or Loss From Business, to respondents’s counsel for four putative businesses. Supporting documents relating to only one of them were provided in response to the Court’s August 4, 2005, order. On November 1, 2000, petitioner purchased a one-third interest in a luxury suite at Enron Field/Minute Maid Park for Houston Astros baseball games for $26,000. The “business”, as described by petitioner, was the resale of the luxury suite tickets. Petitioner argues that he is entitled to claim a loss of $17,671.54 from this “business”. Petitioner’s evidence that he was carrying on a ticket resale business is a receipt for purchase or use of the luxury suite, a receipt for catering services in the suite, and one invoice to one person for “2 Nights Enron Box” at $1,008 per night. Section 162(a) generally allows a deduction for ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business. Generally, no deduction is allowed for personal, living, or family expenses. See sec. 262. The taxpayer must show that any claimed business expenses were incurred primarily for business rather than social reasons. See Rule 142(a); Walliser v. Commissioner, 72 T.C. 433, 437 (1979). To show that the expense was not for personal reasons, thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011