Peter F. & Maureen L. Speltz - Page 24

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          where there is a mixture of business and personal aspects, some             
          discretion is permitted to determine which considerations                   
          predominate and whether any part of the expenditure may qualify             
          for a deduction.  See Feldman v. Commissioner, supra at 464;                
          Heineman v. Commissioner, 82 T.C. 538, 542 (1984) (the                      
          distinction between business expenses and personal expenses is              
          based on a weighing and balancing of the facts and circumstances            
          in each case); Sharon v. Commissioner, supra at 524 (a weighing             
          and balancing of the facts is required to give the business and             
          personal characteristics their proper order of importance).                 
               We agree with respondent that the hours Mr. Speltz spent               
          picking up mail and groceries and those spent transporting                  
          firewood without children are not sufficiently business oriented            
          to warrant an expense deduction.  Nonetheless, Mr. Speltz                   
          completed a substantial number of hours of business-oriented                
          services for the daycare that Mrs. Speltz credibly substantiated.           
          We therefore find that the medical expense deductions                       
          attributable to Mr. Speltz’s business-oriented activities were              
          ordinary and necessary business expenses of the daycare.                    
          Whether the Payments Were Reasonable in Amount                              
               We must also determine whether the amounts paid to Mr.                 
          Speltz as compensation were reasonable in amount.  Mr. Speltz was           
          paid $3,279 in 2000 and $4,539 in 2001.  Whether amounts paid as            
          wages are reasonable compensation for services rendered is a                
          question of fact to be decided on the basis of the facts and                

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