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and all Rule references are to the Tax Court Rules of Practice
and Procedure.
Respondent determined a $1,813 deficiency in petitioners’
2004 Federal income tax. The issues for decision are whether
petitioners are entitled to claim: (1) A bad debt deduction for
a “loan” they provided to their son; (2) a deduction for medical
and dental expenses; (3) a deduction for the business use of
their home that is attributable to the operation of a nonprofit
activity; and (4) a miscellaneous itemized deduction for vehicle
expenses incurred in the operation of a nonprofit activity and in
Mr. Sizelove’s employment.
Background
Some of the facts have been stipulated and are so found.
The stipulation of facts and the exhibits received into evidence
are incorporated herein by reference. At the time the petition
was filed, petitioners resided in California.
On their timely filed 2004 joint Form 1040, U.S. Individual
Income Tax Return, petitioners claimed a $10,000 bad debt
deduction for a “loan” made to their son and his new wife during
2004 and an $8,460.38 deduction for medical and dental expenses
(before application of the 7.5-percent floor). Petitioners
substantiated $2,551 in medical expenses, consisting of payments
to Medicare and their health insurance provider, Teamsters
Benefit Trust.
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Last modified: March 27, 2008