Lucien Joseph Larvadain - Page 6

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         lack of substantiation.  Although petitioner substantiated $1,514            
         for insurance, $3,027 for repairs and maintenance expenses, and              
         $898 for utilities, respondent disallowed those expenses as                  
         personal in nature.                                                          
              In the notice of deficiency respondent determined that                  
         petitioner is entitled to deduct $2,010 as real estate taxes,                
         $12,740 as mortgage interest, and $400 as a charitable                       
         contribution deduction on Schedule A, Itemized Deductions.                   
              Section 162(a) allows a taxpayer to deduct all ordinary and             
         necessary expenses paid or incurred in carrying on a trade or                
         business.  Under section 280A, however, deductions associated                
         with a home office are generally disallowed unless the home                  
         office is used exclusively and regularly as the principal place              
         of business of the taxpayer.4                                                
              Petitioner presented no evidence to substantiate deductions             
         claimed for advertising expenses, car and truck expenses,                    
         legal/professional expenses, and other expenses which consisted              
         of postal and shipping, business calls and faxes, and computer               
         and software services claimed on Schedule C.  Secs. 162, 274(d),             
         280F(d)(4).  Respondent’s determination as to these adjustments              
         is sustained.                                                                

               4  Petitioner does not argue, nor does the record establish,           
          that petitioner satisfied the requirements of sec. 7491(a).                 

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