Michael and Penny Rhodes - Page 14

                                       - 13 -                                         
          presented to him, and the Court finds his testimony credible.               
          Therefore, as above, petitioners failed to properly substantiate            
          their car and truck expenses.                                               
               As for petitioners’ office expenses and utilities, their               
          personal residence is listed on the Schedules C for both                    
          activities as the business address.  Petitioners offered no                 
          documentation or testimony showing they were entitled to                    
          deductions for a home office, nor was any evidence offered to               
          substantiate the deductions for either year.  Therefore, the                
          claimed deductions are disallowed in their entirety.                        
               Finally, petitioners claimed supplies deductions for 1994              
          and 1995.  Ms. Rhodes offered scant documentation supporting                
          these particular business expenses but submitted a few receipts             
          that were purportedly signed by her upline distributor, Kelli               
          Kaufman.  Ms. Kaufman, however, denied it was her signature on              
          those receipts.  Some of the receipts Ms. Rhodes alleged were               
          signed by Ms. Kaufman are dated after Ms. Kaufman ceased                    
          participating in Amway.  In light of the other false                        
          documentation Ms. Rhodes presented, the Court finds Ms. Kaufman’s           
          testimony credible and finds that all documents submitted by                
          petitioners in support of their Amway expenses are false.                   
          Petitioners are not entitled to the deductions for the expenses             
          claimed on their return relating to this activity.                          

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011