Robert Thomas Walters - Page 3




                                        - 2 -                                         
          case.  The issue for decision is whether petitioner is entitled             
          to deductions for car and truck expenses relating to 2002.                  
                                     Background                                       
               Petitioner operated a home remodeling business, RTW                    
          Contracting.  He frequently drove to numerous job sites in his              
          truck, which he used primarily for business purposes.  Petitioner           
          maintained job worksheets on which he recorded the date, job site           
          location, names of employees working at the site, work performed,           
          and total number of miles petitioner drove to and from the site.            
               On his 2002 Schedule C, Profit or Loss From Business,                  
          petitioner deducted car and truck expenses of $10,878, based on             
          the 2002 standard mileage rate of 36.5 cents per mile for 29,803            
          business miles.  On August 25, 2005, respondent issued petitioner           
          a notice of deficiency denying, due to lack of substantiation,              
          petitioner’s deduction.                                                     
               On November 23, 2005, while residing in St. Louis, Missouri,           
          petitioner filed his petition with the Court.                               
                                     Discussion                                       
               Section 162 allows a deduction for all ordinary and                    
          necessary expenses paid or incurred in carrying on a trade or               
          business.  Pursuant to section 274(d), however, certain business            
          expenses are subject to stricter substantiation requirements.               
          Section 274(d) provides that no deduction shall be allowed with             
          respect to any listed property defined in section 280F(d)(4),               







Page:  Previous  1  2  3  4  5  Next 

Last modified: November 10, 2007