James A. and Joan H. Soholt - Page 15




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          Publications                                                                
               Petitioners claimed $91 of publication expenses.                       
          Petitioners paid $98.80 for the Sunday Star Tribune for the year            
          at issue.  Mr. Soholt read the business section of the paper to             
          familiarize himself with area business news as well as to be                
          prepared in the event a client asked him about a particular                 
          business article, although both petitioners read other parts of             
          the Sunday paper for personal use.                                          
               The cost of a daily newspaper of general circulation is                
          generally nondeductible.  Wheeler v. Commissioner, T.C. Memo.               
          1984-425.  Petitioners testified that they each read parts of the           
          Sunday paper for reasons unrelated to Mr. Soholt’s business.                
          Petitioners’ use of the Sunday Star Tribune was not confined to             
          the business section.  Petitioners have not offered a method for            
          us to estimate reliably how much of Mr. Soholt’s use of the                 
          Sunday newspaper was for business.  Petitioners are therefore not           
          entitled to any deduction for publications in 2003.                         
          Telephone Expenses                                                          
               Petitioners claimed $912 of telephone expenses.  The parties           
          stipulated that petitioners paid $462.69 to Qwest for 2003.                 
          Petitioners introduced documentation showing that they incurred             
          $39.64 in telephone charges from PowerNet Global Communications,            
          3 cents from TTI, and $55 for MCI calling cards, but they did not           
          explain the PowerNet Global Communications or TTI charges.  Mr.             







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