- 2 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008