- 10 - The erroneous items giving rise to the 1994 tax deficiency total $42,565 ($37,239 Form 4797 loss + $4,183 theft loss + $1,143 medical/dental expenses) and are attributed equally to petitioner and Mr. Capehart; i.e., $21,282.50 to each. We refer to the erroneous items attributed to petitioner and Mr. Capehart respectively as her or his erroneous items. Since all erroneous items giving rise to the deficiency for 1994 are attributed equally to petitioner and Mr. Capehart, under the general rule, petitioner would be liable for one-half of the deficiency ($4,112.50). See sec. 6015(d)(1), (3)(A); sec. 1.6015- 3(d)(4)(i)(A), Income Tax Regs. 2. Tax Benefit Exception Section 6015(d)(3)(B) provides an exception to the general rule under section 6015(d)(3)(A) that an item giving rise to a deficiency on a joint return is allocated to the spouses filing a joint return in the same manner as it would have been allocated if the spouses had filed separate returns for the taxable year. Section 6015(d)(3)(B) provides that, under rules prescribed by the Secretary, an item giving rise to a deficiency that is attributable to one spouse must be allocated to the other spouse “to the extent the item gave rise to a tax benefit on the joint return” to the other spouse. In essence, section 6015(d)(3)(B) 2(...continued) increase the portion of the deficiency for which petitioner would remain liable.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011