- 3 -
sewing, crafts, and floral arrangement activity. Ms. Rhodes’s
background consisted of high school and 1 year of a vocational
school where she studied medical assisting. She has no formal
training in sewing or floral arrangements.2 Petitioners also
became Amway sale distributors on January 29, 1990, and continued
in this activity during the years at issue. Ms. Rhodes primarily
conducted the Amway activity. Ms. Rhodes was responsible for
maintaining the books and records for both Keepsake and Amway.
Petitioners timely filed joint Federal income tax returns
for 1994 and 1995. They reported the following amounts from the
aforesaid activities on their Schedules C for 1994 and 1995:
Keepsake 1994 1995
Gross income $18,396.42 $ 6,286.58
Expenses
Car and truck 10,035.16 3,772.80
Insurance 396.74 378.00
Office expenses 110.87 97.32
Supplies 24,564.98 10,973.16
Utilities 623.64 237.14
Other expenses 148.00 658.19
Total expenses 35,879.39 16,116.61
Net loss $17,482.97 $ 9,830.03
2Ms. Rhodes enrolled in a continuing education class for
floral designing through Indiana-Purdue University after the tax
years in question.
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