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PAPERBACK BOOK, 1 PAGE COVER PAGE, AND 1-3 PAGE RELEASE TO BE
COLLATED STAPLED AND INSERTED INTO A PADDED ENVELOPE MAILER”,
that totaled $1,134.42, and also 1 “SOFTWARE MEDIA CONTACT LIST”,
that totaled $2,430.21.9 The invoice indicates below the total
“PREPAID VIA VISA CREDIT CARD ENDING IN NUMBER: *6166 EXPIRATION
DATE 01/03".
Petitioners also claimed on their Schedule C for the taxable
year 2000 supplies other than those included in CGS of $6,902.80,
which respondent disallowed. At trial petitioners provided
invoices for, inter alia, a Dell computer, a digital camera, a
scanner, and office furniture, which substantiated $5,748.27 of
their claimed expenses. Respondent conceded that petitioners are
entitled to a depreciation expense of $1,069 for taxable year
2000. See supra note 1.
Additionally, petitioners claimed total expenses of
$25,936.49 on Schedule C of their 2000 joint Form 1040, which
included “Other expenses” of $15,064.69 on line 27 of Schedule
9Attached to the invoice was a fax from Bacon’s Mailing
Service to Hansie Productions, entitled “Re: Quote for Mailing”,
dated Apr. 9, 1999, that stated:
Project Description: Mailing to include one kit
cover with one 5x7 photo with label caption affixed to
the back, one paperback book, one 1-page generic cover
page and one 3-page release to be collated and stapled
and inserted into padded mailer. Client to provide
letterhead for 1st pages of release and paperback
books. Bacon’s to provide plain white for second pages
of release, photo reproduction, kit covers, and padded
mailers. (Emphasis omitted.)
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Last modified: March 27, 2008