- 3 -
When the petition in the instant case was filed, petitioners
Augusto Negret and Maria Negret (hereinafter sometimes referred
to as Maria) resided in Florida.
During 2003 Maria operated a “Schedule C business” as an
Avon representative. This business will hereinafter sometimes be
referred to as Maria’s Avon business. Table 1 sets forth
pertinent information from the Schedule C relating to Maria’s
Avon business, that petitioners attached to their 2003 Form 1040,
U.S. Individual Income Tax Return, together with respondent’s
adjustments in the notice of deficiency.
Table 1
Amount Respondent
Schedule C Line Item Claimed Determined Adjustment
1. Gross Receipts Or Sales $831 $2,888 1$2,057
8. Advertising 1,350 1,350 -0-
Tools -0- 1,770 (1,770)
9. Car And Truck Expenses 2,678 2,678 -0-
13. Depreciation 10,937 -0- 10,937
15. Insurance 1,180 -0- 1,180
18. Office Expense 150 150 -0-
22. Supplies 250 250 -0-
24a. Travel 885 885 -0-
24d. Meals And Entertainment 352 352 -0-
27. Other Expenses 540 540 -0-
28. Total Expenses 18,322 7,975 10,347
31. Net Profit Or (Loss) (17,491) 2(5,087) 212,404
1 Petitioners concede this adjustment.1
2 These amounts are not specifically set forth in the notice of2
deficiency but are the computational results of the amounts that are set
forth.
The Schedule C shows that Maria’s vehicle was used as
follows in 2003: 7,440 miles for business; 1,250 miles for
commuting; and 2,900 miles for “other”. Petitioners’ claimed
$2,678 car and truck expenses were computed by multiplying 7,440
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Last modified: March 27, 2008