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event-planning business on her 2002 Schedule C. Respondent
disallowed the deductions that petitioner claimed on her 2002
Schedule C, as follows:
Expense Amount
Utilities $1,242
Supplies 1,321
Repairs and maintenance 1,838
Rent or lease of 847
vehicles, machinery, or
equipment
Office expenses 130
Legal and professional 1,250
services
Depreciation and sec. 179 2,950
expense
Car and truck expenses 5,679
Advertising 429
Total 15,686
Discussion
A. Schedule C Business Expenses
Deductions are a matter of legislative grace, and taxpayers
bear the burden of proving that they are entitled to any
deductions claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner,
503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292
U.S. 435, 440 (1934). Taxpayers are required to maintain
sufficient records to enable the Commissioner to determine their
correct tax liability. Sec. 6001.
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