Isaac Baranowicz and Lora D. Baran, f.k.a. Lorraine D. Baranowicz - Page 7

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          former spouse.  Sec. 6015(c) and (d); Culver v. Commissioner, 116           
          T.C. 189, 194 (2001).  In the context of a disallowed deduction,            
          “actual knowledge” under section 6015(c) requires proof that the            
          spouse seeking relief had actual knowledge of the factual                   
          circumstances which made the item disallowable as a deduction.              
          Mora v. Commissioner, 117 T.C. 279, 292 (2001); King v.                     
          Commissioner, 116 T.C. 198, 204 (2001).                                     
               Isaac argues that the investments in the equipment leasing             
          partnerships were allocable to Lora and himself and that Lora had           
          actual knowledge of those investments.  As a consequence, Isaac             
          contends that Lora should not be entitled to relief under section           
          6015(c).  Lora argues that the investments in the equipment                 
          leasing partnerships were allocable to Isaac and that she lacked            
          actual knowledge of the underlying circumstances resulting in the           
          disallowance of the deductions relating to these investments.               
          Lora contends, and respondent has determined, that she meets the            
          requirements for relief from joint liability under section                  
          6015(c).                                                                    
               We conclude that the equipment leasing partnership                     
          transactions are allocable to Isaac.  Isaac made these                      
          investments in his name only.  Isaac was a C.P.A.  Isaac actively           
          sought out the investments, and he marketed the investments to              
          his own clients.                                                            








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