Evans v. Commissioner of Internal Revenue, 122612 FEDTAX, 1263-12S

Docket Nº:1263-12S
Opinion Judge:SWIFT, Judge
Party Name:NEAL C. EVANS, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:Neal C. Evans, pro se. Craig A. Ashford, for respondent.
Case Date:December 26, 2012
Court:United States Tax Court
 
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T.C. Summary Opinion 2012-125

NEAL C. EVANS, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 1263-12S

United States Tax Court

December 26, 2012

NOT PRECEDENTIAL

Neal C. Evans, pro se.

Craig A. Ashford, for respondent.

SUMMARY OPINION

SWIFT, Judge

This case was heard pursuant to the provisions of section 7463 of the Internal Revenue Code in effect when the petition was filed.1] Pursuant to section 7463(b), the decision to be entered is not renewable by any other court, and this opinion shall not be treated as precedent for any other case.

Respondent determined deficiencies of $4, 148 and $7, 281 in petitioner's 2008 and 2009 Federal income tax, plus a penalty under section 6662(a) for each year. The primary issue for decision is whether certain expenses petitioner reported on his tax returns are deductible as ordinary and necessary expenses of a trade or business.

Background

Some of the facts have been stipulated and are so found. At the time of filing the petition, petitioner resided in Utah.

In 2008 and 2009 petitioner was employed full time with a pest control company from which he received an annual salary of approximately $55, 000.

On the side and apart from his employment, petitioner provided limited consulting services (side activity) relating to pest control on a dairy farm in Snowville, Utah, approximately 100 miles from Magna, Utah, where he lived. Petitioner's side activity generated total gross income of $1, 500 for 2008 and $1, 487 for 2009. In his side activity petitioner apparently provided consulting services only to one "client"--the dairy farm in Snowville.

Petitioner did not maintain any credible books and records relating to his side activity.

On his 2008 and 2009 Federal income tax returns, petitioner described his side activity as "food consultant", and he reported gross income therefrom of only $500 for 2008 and $1, 487 for 2009. On Schedules C, Profit or Loss From Business, attached to his tax returns petitioner reported the following business expenses relating to his side activity:

Expense

2008

2009

Advertising

$654

$936

Car and truck

14, 833

11, 560

Commissions and fees

633

330

Contract labor

1, 339

1, 785

Depreciation/sec. 179

12, 207

88

Insurance

1, 224

1, 720

Interest--other

3, 192

5, 030

...

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