- 17 -
respect to that claimed business was for profit. On that record,
we find that petitioners have failed to carry their burden of
establishing that during each of the years at issue Mr.
Agbaniyaka was carrying on an arts and crafts business within the
meaning of section 162(a).
Based upon our examination of the entire record before us,
we find that petitioners have failed to carry their burden of
establishing that they are entitled for each of their taxable
years 2001 through 2004 to the Schedule C net loss that they
claim for each such year.14
14Assuming arguendo that petitioners had carried their
burden of establishing that during each of the years at issue Mr.
Agbaniyaka was carrying on an arts and crafts business, they
would still have to satisfy other applicable requirements in
order to carry their burden of establishing their entitlement to
the Schedule C net loss claimed for each such year. With respect
to the cost of goods sold that petitioners claim for each of
their taxable years 2002 through 2004, on the record before us,
we find that petitioners have failed to carry their burden of
establishing the manner by which they derived the cost of goods
sold claimed, the propriety of that manner, and the propriety of
the amount that they claim. With respect to the depreciation
deduction that petitioners claim for the Dodge van for each of
their taxable years 2001 through 2004, on the record before us,
we find that petitioners have failed to carry their burden of
establishing the propriety of the depreciation deduction claimed
for each such year. See, e.g., sec. 167(c) (Basis for Deprecia-
tion). With respect to the expenses that petitioners claim for
each of their taxable years 2001 through 2004 relating to the
Dodge van (e.g., gasoline, repair, oil), which is listed property
within the meaning of sec. 280F(d)(4)(A)(i), on the record before
us, we find that petitioners have failed to carry their burden,
inter alia, of establishing all of the elements that they must
prove in order to satisfy the requirements under sec. 274(d).
See sec. 274(d)(4); sec. 1.274-5T(b)(6), Temporary Income Tax
Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985). With respect to the
(continued...)
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