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expenses for each of the years 1999 and 2000. Respondent allowed
$1,014 and $1,731 for 1999 and 2000, respectively. This amount
included $36 for a P.O. box for both years.
Petitioner has failed to substantiate that any additional
amounts were paid for a P.O. box for 1999 or 2000. Accordingly,
respondent’s determination on this issue is sustained.
Ms. Babyak credibly testified that while she worked for
petitioner Fed Ex picked up packages from petitioner’s nursing
business approximately two times per week, but petitioner tried
to limit the number of pickups. Ms. Babyak estimated the cost of
each pickup to be between $75 and $200. On the basis of the
record, we approximate that in 2000 petitioner paid $7,800 to Fed
Ex. Accordingly, in addition to the $1,695 in delivery and
freight expense allowed by respondent for 2000 ($1,731 minus $36
for the P.O. box), petitioner is entitled to deduct an additional
delivery and freight expense of $6,105 for 2000. We believe that
petitioner likely paid a similar amount to Fed Ex in 1999.
Accordingly, petitioner is entitled to deduct her total claimed
postage expense, $7,204, for 1999. Petitioner has failed to
substantiate that any additional amounts were paid for postage or
delivery expenses for 1999 or 2000.
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Last modified: May 25, 2011