- 6 -
of business potential. Dean v. Commissioner, 56 T.C. 895, 902
(1971); Glotov v. Commissioner, T.C. Memo. 2007-147.
Personal, living, or family expenses are not deductible.
Sec. 262. Similarly, deductions for expenditures that are
properly categorized as capital expenditures are not allowable.
Sec. 263. In order for petitioner to be entitled to deduct her
claimed Schedule C expenses she must satisfy the requirements of
section 162. Additionally, certain expenses warrant the
heightened substantiation requirements of section 274(d) and the
regulations thereunder.
Petitioner’s return for 2002 contains a Schedule C for “ASIL
Investments” on which she reported zero gross receipts and a net
loss of $77,267. Respondent disallowed all of the claimed
deductions for expenses, which were listed on petitioner’s 2002
Schedule C as follows:
Expenses Amount
Car and truck expenses $1,230
Depreciation 4,196
Insurance 1,600
Legal and professional services 12,115
Office expense 10,132
Rent or lease of other business 4,152
property
Supplies 5,936
Travel 10,706
Meals and entertainment 5,845
Wages 1,490
Accounting 1,832
Answering service 495
Club membership 3,170
Delivery and freight 757
Gifts 1,226
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008