TAX COURT OPINION

Case: Tobias Reid
Docket Number: 24111-06S
Judge: Colvin
Opinion Type: bench
Filed: 07/16/2008
Pages: 4

6&-t'M cla- q U NITED STATES TAX COURT WASHINGTON , DC 2021 7 TOBIAq REID, Petitione r V . COMMIS SIONER OF INTERNAL REVENUE , Respondent O R D E R Docket No . 24111-0 6 P Proced irsuant to Rule 152(b), Tax Court Rules of Practice and re, it i s 0 DERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the proceedings in the above case before Judge Robert P . Ruwe at Cleveland, Ohio, containing his oral findings of fac and opinion rendered on June 19, 2008 . Ti accordance with the oral findings of fact and opinion, decis n will be entered for respondent . (Signed) Robert P . Ruwe Judge Dated : Washington, D .C . July 16, 2008 JUL 17 2003 Bench Opinion by Senior Judge Robert P . Ruwe June 19, 200 8 Tobias Reid 24111-06 S 3 5 The Court has decided to render Oral Findings of 6 act and opinion in this case and the following represents 7 he Court's Oral Findings of Fact and Opinion . These Ora l Findings of Fact and opinion shall not be relied upon a s 9 precedent in any other case . 10 This proceeding was heard as a small tax cas e 11 ursuant to the provisions of Section 7463 of the Internal 12 evenue Code, 1986, as amended . Rules 170 through 175 of 13 :he Tax Court Rules of Practice and Procedure . 14 This Bench Opinion is made pursuant to th e 15 authority granted by Section 7459(b) of the Internal Revenue 16 ode, as amended, and Rule 152 of the Tax Court Rules o f 17 Practice and Procedure . 18 Tobias Reid appeared on his behalf in this case 19 nd testified . Some of the facts have been stipulated and 20 re so found . Respondent determined a deficiency against 21 Petitioner for his taxable year 2004 in the amount o f 22 3,069, consisting of income tax of $786 and self-employment 23 ax of $2,283 . On Petitioner's return for 2004 he reported 24 ross receipts from his horticultural landscaping business 25 on Schedule C in the amount of $24,778 . After claimin g Heritage Reporting Corporation (202) 628-4888 4 1 various business deductions, Petitioner reported Schedule C 2 rofit of $577 . Respondent ' s deficiency determination is based on disallowance of $15,593 in the claimed business expenses o n 5 chedule C . 6 Respondent disallowed the following Schedule C djustments for lack of substantiation . These are all in chedule C . expenses in the amount of $1,860 ; o ~R.PI supplies in the amount of $1,795 ; legal and professiona l 10 services in the amount of $3,500 ; office expenses in the 11 mount of $4,380 ; and car and truck expenses in the amount 12 f $5,200 . dbv,ousl y 13 Respondent -1's allowed some of Petitioner' s 14 schedule C deductions . Petitioner claims that he i s 15 entitled to more . 16 At trial Petitioner testified that his business 17 records for 2004 were not available because they had been in 18 storage and as a result of a legal action against th e 19 Petitioner, were disposed of in an auction of Petitioner's 20 property . He was, therefore, unable to produce an y 21 22 23 documentation such as checks , invoices or other business books and records showing the business purpose of business expenses that he claimed on his 2004 return . 24 On cross examination the Petitioner acknowledged 25 that office expenses that he claimed included rent on his Heritage Reporting Corporation (202) 628-4888 5 1 apartment . He also acknowledged that some of the 2 professional service expenses that he claimed were for 3 leaning the apartment . It was unclear how much of th e 4 apartment was allegedly used for business purposes versus 5 personal use . Petitioner also testified that some of the 7 xpenses claimed as other expenses were for educatio n RAZ -o 0 94 8 xpenses but no details about payments were offered excep t 9 hat Petitioner testified that he had to drop out of classe s 10 t Cleveland State, that he could not pay his educationa l bleewse IZPQ 11 xpenses . 12 While it appears the Petitioner did incur some 13 lusiness expenses during 2004, there is no evidence to 14 support any amounts in addition to what Respondent has 15 already allowed . 16 We, therefore, uphold the determination made in 17 the notice of deficiency . A decision will be entered for 18 Respondent and that concludes the Court's bench opinion in 19 t is case . 20 (Whereupon, at 9 :44 a .m ., the bench opinion in the 21 above-entitled matter was concluded . ) 22 / 23 / 24 / 25 / Heritage Reporting Corporation (202) 628-4888