- 2 -
all Rule references are to the Tax Court Rules of Practice and
Procedure.
Respondent determined deficiencies in petitioners’ Federal
income tax of $2,542 for 2001, $3,672 for 2002, and $2,032 for
2003. Petitioners concede that they are entitled to mortgage
interest expense deductions of $9,384.63 for 2001 and $9,254.42
for 2002 and a real estate tax deduction of $945.12 for 2002.
The issues remaining for decision are whether petitioners: (1)
Failed to report gross income for 2001, 2002, and 2003; and (2)
are entitled to deduct meals and entertainment expenses for 2003.
Background
The stipulation of facts and the exhibits received into
evidence are incorporated herein by reference. At the time the
petition was filed, petitioner resided in Colorado Springs,
Colorado.
For the years under consideration, Willie D. Outlaw
(petitioner) was an employee of the U.S. Postal Service. He also
conducted a landscaping business. Petitioners filed joint Forms
1040, U.S. Individual Income Tax Return, for 2001, 2002, and
2003. On Schedule A, Itemized Deductions, petitioners deducted
$11,507 in home mortgage interest for 2001. For 2002,
petitioners deducted $18,562 in home mortgage interest and real
estate taxes of $1,849.
On Schedules C, Profit or Loss From Business, petitioners
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: November 10, 2007