- 2 -
MEMORANDUM FINDINGS OF FACT AND OPINION
WHERRY, Judge: This case is before the Court on a petition
for judicial review of a notice of deficiency, dated August 12,
2004, that determined deficiencies of $6,795 and $77 for taxable
years 2000 and 2001, and a section 6662 accuracy-related penalty
of $1,359 for taxable year 2000.1 Petitioners timely petitioned
this Court to review the notice of deficiency. After concessions
by both parties,2 the issues for decision are:
(1) Whether petitioners are entitled to fully or partially
deduct, in taxable year 2000, business startup expenditures that
were incurred in 1998 and 1999;3
1Unless otherwise indicated, all section references are to
the Internal Revenue Code (Code) of 1986, as in effect for the
years in issue, and all Rule references are to the Tax Court
Rules of Practice and Procedure.
2Petitioners concede that they are not entitled to a $5,200
deduction for “Disabled Workers [sic] Impair” claimed on their
Schedule C, Profit or Loss From Business, for their 2001 taxable
year. Respondent concedes that for taxable year 2000,
petitioners are allowed to claim the following Schedule C
deductions: (1) $899.57 interest expense; (2) $217 travel
expense; (3) $1,387.44 in other expenses; (4) $1,069 depreciation
expense; and (5) $1,620 in educational expenses for University of
Texas classes. Respondent concedes that for taxable year 2001,
petitioners are allowed a $1,117 Schedule C deduction for donated
books.
3The total amount of startup expenditures that petitioners
incurred in 1998 and 1999 and deducted in 2000 is unclear to the
Court. Respondent claimed that petitioners presented
approximately $12,000 in receipts dated 1998 or 1999.
Petitioners offered into evidence receipts dated 1998 or 1999
totaling approximately $9,630. The discrepancy regarding the
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008