Gary Lee Colvin - Page 9




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          IV, Information on Your Vehicle, petitioner did not complete the            
          section and indicated “SEE STMT”.  Petitioner attached a Schedule           
          C “Multiple Auto Statement”.  Under the heading “Vehicle 1”,                
          petitioner listed business miles of 14,200.  Under the heading              
          “Vehicle 2”, petitioner listed business miles of 4,000.                     
               For 2000, petitioner claimed a Schedule C interest deduction           
          on a loan he entered into with his mother, Rhoda Colvin, in the             
          amount of $5,195.  Respondent disallowed the entire deduction.              
          Petitioner presented as substantiation a photocopy of the front             
          of a check issued to his mother in the amount of $5,000.  A                 
          handwritten notation on the memo line of the check indicated that           
          the check was for “Loan Repayment”.  Other handwritten notations            
          on the top of the check were “Loan Pay & Int 4575”, “Mar Mtg                
          425.00”, and “also Honda Ref $300 toward GLC Loan of $35,000”.              
               Petitioner also claimed as a Schedule C deduction $1,750 in            
          fees he allegedly paid to his mother for accounting services, tax           
          preparation, and representation.  Petitioner’s 1997, 2000, and              
          2003, Federal tax returns indicate that they were prepared by his           
          mother.  Petitioner presented as substantiation an invoice in the           
          amount of $500 from Colvin Business Services, a business                    
          conducted by petitioner’s mother, to Colvin Business Services II,           
          petitioner’s business.  The invoice, dated April 30, 2000,                  
          reflects that petitioner paid the invoice with check No. 6718 on            
          June 5, 2000.  Petitioner’s original bank statements were                   







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