In the Matter of the Petition                                             :


              THOMAS AND MARGARET MOORE                                   :    DETERMINATION
                                                                                                                             DTA NO. 816357

for Redetermination of a Deficiency or for Refund of New
York State and New York City Personal Income Taxes
under Article 22 of the Tax Law and the Administrative                       :
Code of the City of New York for the Year 1993

__________________________________________________________ :



Petitioners, Thomas and Margaret Moore, 66 Hills Lane, Westport, Connecticut 06880, filed a petition for redetermination of a deficiency or for refund of New York State and New York City personal income taxes under Article 22 of the Tax Law and the Administrative Code of the City of New York for the year 1993.

A hearing was held before Winifred M. Maloney, Administrative Law Judge, at the offices of the Division of Tax Appeals, 500 Federal Street, Troy, New York, on September 8, 1998 at 11:30 A..M., with all briefs submitted by December 4, 1998, which date began the six-month period for the issuance of this determination. Petitioner Thomas R. Moore appeared pro se and for Margaret Moore. The Division of Taxation appeared by Terrence M. Boyle, Esq. (Andrew S. Haber, Esq., of counsel).


Whether the Division of Taxation properly disallowed, as unsubstantiated, ordinary business expenses connected with a New York source business for the year 1993.

                                                  FINDINGS OF FACT

1. Petitioners, Thomas and Margaret Moore, filed a timely Nonresident and Past-Year Resident Income Tax Return (Form IT-203) and New York City Nonresident Earnings Tax Return (Form NYC-203) for the year 1993. On their Form IT-203, petitioners reported the following items as part of their Federal adjusted gross income of $457,235.00: wages of $63,621.00, taxable interest income of $58.00, dividend income of $312.00, taxable refunds of state and local income taxes of $5,646.00, a capital loss of $3,000.00, Schedule E partnership income of $400,996.001 other income of $19,602.00 and a Keogh adjustment to income of $30,000.00. The New York source income reported on the return consisted of wages of $63,621.00 and other income of $19,602.002 Petitioners subtracted the taxable refund of state and local income taxes of $5,646.00 and interest income on U. S. government bonds of $476,129.00 and arrived at a New York adjusted gross income of zero. Petitioners claimed itemized deductions of $9,997.00. They determined their New York State taxable income to be zero, with zero New York State tax due. Based upon Mrs. Moore’s wages of $63,621.00, petitioners determined the City of New York nonresident earnings tax to be $286.00. Petitioners determined their total State and Cit taxes to be $286.00 and claimed a refund of $5,713.00 of the reported total State and City taxes withheld

Click for Next Page (2/10)

Click for Preface