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respondent failed to plead an increase in the disallowance of
petitioner’s Schedule C deductions for 2003, we consider the only
amount of Schedule C deductions in dispute to be $19,938.
Petitioner testified that Gotta Get Up Productions is a
greeting card, stationery, and gift item business. Petitioner
described Gotta Get Up Productions as a “family business”
involving the prospective sale of artwork created by her brother,
Jon Tomlinson.
Petitioner testified that she took over Gotta Get Up
Productions in March or April of 2003 and that “in 2003 what I
had to do was identify our product offerings, develop prototypes,
select paper, figure out which offerings were going to be
introduced and how they were going to be introduced to the
general public”. Petitioner added that Gotta Get Up Productions
did not open its doors until 2004. Petitioner did not earn any
income from Gotta Get Up Productions in 2003. When asked at
trial whether the expenses she incurred in 2003 were start-up
expenses, petitioner replied that they were “the cost of starting
a business, yes.” Gotta Get Up Productions was not incorporated
during 2003 and had no paid employees in 2003. Petitioner
testified that the people who assisted her received no wages
because they “hadn’t sold anything” and “didn’t have anything”
from which they could receive any money.
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Last modified: March 27, 2008