DocketNumber: Docket No. 16012.
Citation Numbers: 8 T.C.M. 587, 1949 Tax Ct. Memo LEXIS 150
Filed Date: 6/20/1949
Status: Non-Precedential
Modified Date: 11/21/2020
Memorandum Findings of Fact and Opinion
DISNEY, Judge: This case involves income taxes for the calendar year 1944. Deficiency was determined in the amount of $230.67. Respondent's amended answer asks for $11.53 as 5 per cent penalty under
Findings of Fact
The petitioners are husband and wife, residing in Los Angeles, California. Their joint return for the year involved was filed with the collector for the sixth district of California. It showed receipt of income of $4,425 from "Northrop Aircraft, Inc." (for whom petitioner Robert A. Phillips was a supervisor), with deductible expense of $688.50, net $3,736.50. Deductions, including the $688.50, were claimed in the total amount of $1,484.72. This also included $196.67 medical and dental expenses ($383.50 less 5 per cent of income). The deductions claimed*151 were: Contributions $246; interest $176.69; taxes $126.86; losses $50; medical and dental expenses $196.67; "deductible expense" (miscellaneous) $688.50; a total of $1,484.72. Of these amounts the Commissioner allowed, in the determination of deficiency, the following: Contributions $75; interest $176.69 (the amount claimed); taxes $111.86; losses - nothing; medical and dental expenses $64.25; deductible (miscellaneous) expenses $54; a total of $481.80.
The petitioners during the taxable year paid the following expenses, under the headings indicated: Contributions: To church $52; to Red Cross $6; Christmas Seal Fund $2; Salvation Army $5 cash, $10 in clothing; China Relief $2; U.S.O. $17.50; Disabled American Veterans $1; Good Will Society $15; March of Dimes $2; P.T.A. $3; Girl Scouts $1; American Legion $1; Veterans of Foreign Wars $1; Rescue Mission $2.50; War Chest $8; Soldiers & Sailors and Army and Navy Relief $2; total $134. Interest: On mortgage on petitioners' home $152.63; interest on note $29.07; total $181.70. Taxes: On real estate $58.92; personal property $2.50; license tax on car $9.10; sales tax $25; total $95.52. Medical and Dental Expenses: Paid to Dr. Hatcher*152 $76; to Dr. Starr $25; to Dr. Zingrang $14; Yale Street Health Center $10; Dr. Cady $7.50; Dr. Smiley $25; Dr. Hill $10; Health and Accident Insurance $103.20; vitamins, prescriptions, medicine $80; total $350.70. Miscellaneous Expenses: Special shoes used at work and repair thereof $20; gas, depreciation, oil, and repairs on car used in work $400; telephone used in business $24; unemployment insurance $30; total $474.
Petitioner Robert A. Phillips in connection with his work for Northrup Aircraft found it necessary to use his automobile, not only for going to and from his work but in carrying on his work and going from one business location to another. He suggested to his employer that he be compensated therefor but received no compensation and was instead told that the use of his car had contributed to his efficiency and was asked whether he was not satisfied with his rate of pay; after which he considered that he would have to include the use of his car as a part of his own expense. The amount allowed as deduction for the use of the car does not include its use in going to and from work.
Opinion
The above findings of fact have been arrived at in part from records produced*153 and in considerable part by making allowances under the doctrine of
Decision will*155 be entered under Rule 50.