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Revenue Code in effect for the year in issue, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 2001 of $14,365. The issues for
decision are: (1) Whether petitioners omitted interest income of
$142; (2) whether petitioners are entitled to claimed Schedule C,
Profit or Loss From Business, expense deductions; and (3) whether
petitioners are entitled to a medical expense deduction not
claimed on the return.1
Background
Some of the facts have been stipulated, and they are so
found. The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time of filing the
petition, petitioners resided in Weehawkeen, New Jersey.
In March 1999, petitioner Haron M. Veras (petitioner) began
operating a trucking company as a sole proprietor. Petitioner
owned a Freightliner tractor which was utilized to transport
freight. The tractor was purchased in 1999 at a cost of
1 Prior to trial petitioners conceded that they are not
entitled to claimed total itemized deductions of $25,593, which
had been disallowed in the notice of deficiency. The notice of
deficiency allowed petitioners a standard deduction.
The return reflected $912 for medical expense, however,
since the amount did not exceed 7.5 percent of adjusted gross
income, no deduction was claimed. See sec. 213(a). At trial
petitioners asserted that they were entitled to a medical expense
deduction in the approximate amount of $10,000.
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