Yuri G. Glotov - Page 6




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               The record clearly indicates petitioner did not carry on a             
          computer software business in 2003.  Petitioner did not produce             
          documentation showing he operated a computer software business in           
          2003.  Although on his 2003 Schedule C he reported gross receipts           
          of $17,149 from his business, the $17,149 was paid for work                 
          unrelated to the purported software business.                               
               For the foregoing reasons, this Court finds petitioner did             
          not carry on a trade or business as required under section 162.             
          Therefore, he is not entitled to deduct the car and truck expense           
          of $3,977 or the labor expense of $7,070.  See McKelvey v.                  
          Commissioner, supra; Reems v. Commissioner, T.C. Memo. 1994-253;            
          Estate of Miller v. Commissioner, T.C. Memo. 1991-515, affd.                
          without published opinion 983 F.2d 232 (5th Cir. 1993).                     
               Petitioner also claimed a depreciation deduction under                 
          section 167 of $3,479 for the use of his Ford Taurus in the                 
          computer software business.  For a taxpayer to depreciate                   
          property under section 167, the property must be used in a trade            
          or business or held for the production of income.  Porreca v.               
          Commissioner, 86 T.C. 821, 843 (1986); Flowers v. Commissioner,             
          80 T.C. 914, 931-932 (1983).  The trade or business requirements            
          under section 167 are the same as those under section 162.                  
          Lemmen v. Commissioner, 77 T.C. 1326, 1340 n.16 (1981); Miller v.           
          Commissioner, supra.  Petitioner was not engaged in a trade or              
          business for purposes of section 162 in 2003.  Accordingly, the             







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