- 17 -
was derived from her occupation as a cosmetologist/independent
contractor. We therefore conclude that petitioner was the sole
proprietor of the business, “Your Future Style”. Thus, he is
entitled to deduct all substantiated Schedule C expenses that
were incurred in the operation of the business.
A. Taxable Year 2000
As previously stated, on his Schedule C for taxable year
2000 petitioner reported $9,250 of business income from the
business. Additionally, petitioner deducted $20,387 in business
expenses, which resulted in a reported business loss of $11,137.
Respondent, in the notice of deficiency, disallowed $6,904
of petitioner’s claimed $20,387 business expense deductions for
taxable year 2000.
On the basis of the record in this case, for the taxable
year 2000 petitioner has substantiated, through the phone bills,
the utility bills, and his landlord’s letter, business expenses
in the following amounts:
1. Rent $8,340.00
2. BellSouth phone expenses $1,129.70
3. SCE&G utility expenses $1,728.21
Total $11,197.91
Petitioner has substantiated Schedule C business expenses for
taxable year 2000 of $11,198. As previously stated, respondent,
in the notice of deficiency, allowed petitioner $13,483 in
Schedule C business expenses. Thus, respondent has allowed a
larger amount than petitioner was able to substantiate at trial.
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011