Lorenzo Battle - Page 4

                                        - 3 -                                         
          Petitioner used the address of his residence as the business                
          address of Zomans Productions in 2002.                                      
               Petitioner filed for 2002 a Form 1040, U.S. Individual                 
          Income Tax Return, which he prepared using tax preparation                  
          software.  Respondent did not receive the 2002 return until April           
          19, 2004.                                                                   
               On Schedule A, Itemized Deductions, petitioner claimed                 
          deductions for charitable contributions of $3,549 and a                     
          “maintenance fee” of $430.  Petitioner also reported on Schedule            
          A employee business expenses of $3,995.1  Of that amount,                   
          petitioner claimed deductions of $2,892 after taking into account           
          the 2-percent floor of section 67.  In the statutory notice of              
          deficiency, respondent disallowed for lack of substantiation the            
          deductions claimed on Schedule A.                                           
               On Schedule C, Profit or Loss From Business, petitioner                
          claimed deductions for:  (1) Car and truck expenses of $4,910,              
          (2) office expenses of $2,715, (3) travel expenses of $1,540, (4)           
          meals and entertainment expenses of $625,2 (5) other expenses of            
          $5,200, and (6) home office expenses of $4,030.  In the notice of           


               1During the audit of the return, respondent determined that            
          the “maintenance fee” of $430 was a miscellaneous itemized                  
          deduction under sec. 67.  Therefore, petitioner’s claimed                   
          employee business expenses were increased to $4,425.  Of this               
          amount, respondent determined that petitioner would claim                   
          deductions of $3,322 after applying sec. 67.                                
               2Petitioner claimed meal expenses in the total of $1,250,              
          which he reduced by 50 percent as required by sec. 274(n).                  




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011