- 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 that
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011