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Respondent determined for 2003 a deficiency in petitioner’s
Federal income tax of $678. After concessions,1 the sole issue
for decision is whether petitioner is entitled to claim a
business loss deduction of $10,000 on Schedule C, Profit or Loss
From Business.
Background
The exhibits received into evidence are incorporated herein
by reference. At the time the petition in this case was filed,
petitioner resided in York, Pennsylvania.
Petitioner filed separately from his spouse, a Form 1040,
U.S. Individual Income Tax Return, for 2003. On Schedule C
petitioner claimed a deduction of $10,000 for a business loss
from the taxable year 1982.
Respondent issued to petitioner a statutory notice of
deficiency for 2003 disallowing the claimed deduction for lack of
substantiation.
Discussion
The Commissioner’s determinations are presumed correct, and
generally taxpayers bear the burden of proving otherwise.2 Rule
1Petitioner concedes that the Social Security retirement
benefits of $7,404 and the pension from the Public School
Employees Retirement System of $8,260 that he received in 2003
are includable in gross income.
2Petitioner has not raised the issue of sec. 7491(a), which
shifts the burden of proof to the Commissioner in certain
situations. The Court concludes that sec. 7491 does not apply
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