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During 2004, Mr. Sizelove was employed as a liquor store
clerk and served as the president of a nonprofit social
organization from which he derived no salary. Petitioners
claimed a $1,200 deduction (based on $100 per month) for the
business use of their home. Mr. Sizelove used a second bedroom
as a home office for the club and to store its artifacts and
records.
Additionally, petitioners claimed a $4,441.15 deduction for
vehicle expenses attributable to the club and Mr. Sizelove’s
employment with the liquor store. The $4,441.15 figure consists
of $2,619.43 in actual vehicle expenses based on a 38-percent
“percentage of business use” and a $1,821.72 depreciation
deduction. The $2,619.43 in actual vehicle expenses includes 38
percent of the $2,099.24 claimed as expenditures for gas,
repairs, and insurance1 plus $1,821.72 in depreciation.
Petitioners claimed the same depreciation deduction twice.
1 Petitioners listed the following expenditures on an
attachment to their Form 2106, Employee Business Expenses:
Gas $75 per month x 12 $900.00
Repairs per year 587.24
Insurance per year 612.00
Total 2,099.24
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Last modified: March 27, 2008