-15- reported business had a net profit of $14,029 for 1999, resulting from gross receipts of $37,677, total expenses of $18,206, and home business expenses of $5,442. The schedule was accompanied by a 1999 Form 8829 reporting that 25.2 percent of the residence (630/2500) was used exclusively for business purposes and that the $5,442 of home business expenses consisted of operating expenses of $3,054 and depreciation of $2,388. The Form 8829 itemized the home business expenses as follows: Operating expenses: Direct expenses: Utilities $1,359 Other expenses 264 Indirect expenses: Insurance 692 Repairs and maintenance 2,132 Utilities 2,840 Total 5,664 Business-use percentage .252 1,427 Total 13,054 Current depreciation 2,388 Total 5,442 1 We note petitioners’ $4 adding mistake. The 1999 Schedule C itemized the total expenses of $18,206 as follows: Depreciation $1,175 Legal and professional services 556 Office expense 246 Rent or lease: Vehicles, machinery, and equipment 7,476 Travel 4,129 Meals and entertainment (after 50-percent reduction) 1,374 Other expenses1 3,250 Total 18,206Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: November 10, 2007