Emmanuel M. and Blessing N. Nwankwo - Page 7

                                        - 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                     3,352                                    





Page:  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