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Therefore, we sustain respondent’s determination as to the
taxable year 2000.
B. Taxable Year 2001
As previously stated, on his Schedule C for taxable year
2001 petitioner reported $5,000 of business income from the
business. Additionally, petitioner deducted $25,440 in business
expenses, which resulted in a reported business loss of $20,440.
Respondent, in the notice of deficiency, disallowed the entire
amount of petitioner’s claimed $25,440 Schedule C business
expense deductions for taxable year 2001.
On the basis of the record in this case, for the taxable
year 2001 petitioner has substantiated through the aforementioned
documents business expenses in the following amounts:
1. Rent $8,340.00
2. BellSouth phone expenses $1,483.96
3. SSE&G utility expenses $1,044.81
Total $10,868.77
Petitioner has substantiated Schedule C business expenses for
taxable year 2001 of $10,869. We conclude that petitioner is
entitled to deduct Schedule C business expenses for taxable year
2001 of $10,869.
C. Taxable Year 2002
As previously stated, on his Schedule C for taxable year
2002 petitioner reported $1,352 of business income from the
business. Additionally, petitioner deducted $8,631 in business
expenses, which resulted in a reported business loss of $7,279.
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