- 3 - approximately $36,000. The purchase was financed by First Union National Bank, and petitioner was required to make monthly payments of $599.39. The loan carried an annual interest rate of 12.5 percent over a term of 5 years. Petitioner also utilized persons who did the loading and unloading at the pier. Petitioner apparently paid the loaders in cash, and no records were maintained or presented, documenting the amounts paid. During 2001 petitioner also leased a Toyota Forerunner. This vehicle was used in the trucking business during the week and for personal use on weekends. There were no records presented as to amounts expended to operate the Forerunner or contemporaneous records relating to the business use of the vehicle. Petitioner Aurora Veras gave birth on January 16, 2002. Mrs. Veras traveled from the Dominican Republic to the United States sometime in 2001. Petitioners incurred medical expenses during 2001 with respect to Mrs. Veras’s pregnancy. Petitioners presented no records relating to this item. Petitioners timely filed a joint Federal income tax return for the taxable year 2001. No interest income was reported on the return. Attached to the Form 1040, U.S. Individual Income Tax Return, was a Schedule C for petitioner’s trucking business. The Schedule C reflects gross income of $82,515 and total expenses of $69,424. The notice of deficiency determined thatPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011