-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 18,206
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Last modified: November 10, 2007