- 6 - Telephone 2,735 Fuel 10,222 In the notice of deficiency for taxable year 2002, respondent disallowed deductions for: all legal and professional fees; all travel expenses; all employee benefit programs expenses; and all commissions and fees. Respondent also disallowed $4,484 of the $11,210 deducted for repairs and maintenance expenses, and $5,448 of the $20,785 deducted for other expenses. In addition to the disallowed Schedule C business expense deductions, respondent disallowed dependency exemptions claimed for both Raphael and Caroline Nwankwo. Taxable Year 2003 For taxable year 2003, petitioners reported the following income and expenses related to Mr. Nwankwo’s trucking business on their Schedule C: Income: $80,633 Expenses: Depreciation 1,238 Employee benefit programs 2,040 Insurance 4,101 Legal & professional 1,861 Repairs & maintenance 15,210 Taxes & licenses 3,412 Travel 4,102 Other expenses* 37,771 Profit 10,898 *Consisted of: Tolls and parking 5,115 Uniforms and cleaning 2,853 Telephone 3,352Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011