- 6 -
from MVEDC”. MVEDC reported the $58,000 portion to the IRS by
means of Form 1099-MISC, Miscellaneous Income, as “other income”.
Petitioner did not report the $58,000 portion on his 2003 return.
At trial, petitioner continued to maintain that the $58,000
portion was compensation for personal injuries and not includable
in income. He further claimed that he was entitled to a deduction
for attorney’s fees he paid in connection with his lawsuit against
MVEDC. Additionally, petitioner claimed he paid deductible
expenses in connection with the production of the $17,818 in
consulting income. Finally, petitioner, who resided in a home
owned by his daughter and paid no rent to her in 2003, claimed
that rent he would have paid had he been required to pay rent,
together with an array of other expenses, was deductible and that
he should have deducted those expenses on a Schedule C, Profit or
Loss From Business,3 with his 2003 return.
3Petitioner did not attach a Schedule C to his 2003 return.
At trial, petitioner submitted a handwritten page dated Apr. 14,
2007, captioned “Amended 2003 Schedule ‘C’”, on which deductions
totaling $14,498 for “rent, phone, advertising/ cards/supplies/
meals, mileage/travel, misc/membership” were listed. This
summary was revised during the trial to show a corrected total of
$11,065.50 of deductions for “rent, mileage/travel” and
“misc/membership”. In addition, at trial petitioner submitted a
statement in which he claimed a deduction for the “equivalent of
lost medical insurance coverage.”
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007