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have paid in cash, they did not provide receipts or any type of
documentary evidence to support the payment.7 With regard to the
other claimed car and truck expenses, petitioners provided a
small number of receipts. Most of the documentation to support
these expenses consisted of monthly credit card statements or
annual gas card statements.
Petitioners presented no records to substantiate that the
car and truck expenses claimed on their Schedule C for 2002 were
related to the real estate activity or were other than personal
expenses. Although statements from Chevron and Shell reflected
the total amounts charged on credit cards during 2002, there is
no documentation or other evidence to show that the charges were
for ordinary and necessary expenses related to the claimed
business rather than for personal use. Similarly, other receipts
and monthly credit card statements show that money was paid to
Union 76 and Geary Automotive Service; however, petitioners
likewise failed to establish that these were ordinary and
necessary expenses of the real estate activity. For these
reasons, respondent’s determination disallowing petitioners’
Schedule C car and truck expenses is sustained.
7The claimed expenses for which no receipts were provided
include those for gasoline, repairs, and licenses.
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Last modified: November 10, 2007