- 18 - On their 1996 Form 1040, petitioners reported adjusted gross income of $11,069, which amount incorporated a $1,920 loss from Schedule C, a $3,000 capital loss, and $4,552 of other income. An attached statement showed that the other income comprised two “DIRECTORS FEES” of $1,500 each and two “PERSONAL USE OF AUTO” amounts of $881 and $671. The Schedule C loss for Asset Protection Services was computed by subtracting $135,088 in expenses from gross income of $133,168. Taxable income is shown as zero and total tax as $212 (on account of self-employment tax). The 1997 Form 1040 similarly reflected adjusted gross income of $9,694, including $1,006 in business income from Schedule C, a $3,000 capital loss, and other income of $8,190. The other income included two “DIRECTORS FEES” of $3,000 each and two “PERSONAL USE OF AUTO” amounts of $1,095 each. The Schedule C income of $1,006 was derived from $8,127 in gross income and $7,121 of expenses. Petitioners’ taxable income was shown as zero and total tax as $990. On the Forms 1041 filed on behalf of HGAMC for 1996 and 1997, respectively, petitioners reported interest income ($74 and $2,497) and business income from an attached Schedule C ($262,806 and $54,902) and deducted therefrom principally fiduciary fees ($3,000 and $6,000) and charitable deductions to HGRCT ($259,880Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011