-5- Petitioners introduced many undated documents. Petitioner testified that he incurred some expenses in 1994 because he had placed the documents for those expenses in the box meant to contain only documentation of expenses incurred in 1994. Other expenses, however, were supposedly incurred in 1995 because petitioner had placed the documents for those expenses in the box meant to contain only documentation of expenses incurred in 1995. The invoices for repair and maintenance expenses that were on another company’s letterhead and were dated did not show whether petitioner actually paid them. For example, petitioner submitted a $252 invoice for painting and a $145 invoice for lawn care, but he introduced no corresponding documentary proof that he paid for the services. Petitioner’s testimony was the only evidence petitioner submitted indicating that he paid the repair and maintenance expenses. Petitioner also submitted more than 20 different invoices from a hardware store to support his deduction for supplies. Petitioner did not, however, submit corresponding receipts, canceled checks, or credit card statements that would have shown he paid the amounts indicated on these invoices. Regarding bad debt expenses, petitioner testified that he occasionally made small loans in his real estate business to potential home buyers. He further testified that when a purchaser needed larger sums of money, $10,000 or greater, hePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011