James A. Petrie IV - Page 7

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               The notice of deficiency, based on the 1991 joint Federal              
          return disallowed the exemption amount for Ms. Petrie, reduced              
          petitioner's reported rental income by $3,0009 and disallowed               
          $2,30410 of petitioner's rental expense.                                    
               The first issue for decision is whether petitioner is                  
          entitled to use head of household filing status11 for the years             
          in issue.  Petitioner contends that he is entitled to claim head            
          of household filing status as claimed on his 1990 and 1991                  
          amended returns.  Respondent contends that petitioner was married           
          during the years in issue and because Ms. Petrie did not join in            
          the filing of the returns, petitioner must claim married filing             
          separately filing status.                                                   
               Section 1 imposes a tax on the taxable income of                       
          individuals.  The rate of tax depends on the taxpayer's filing              
          status.  Sec. 1(a) through (d).  There are four filing categories           
          for individual taxpayers:  (1) Married filing a joint return; (2)           
          unmarried head of household; (3) unmarried individual; and (4)              
          married filing a separate return.                                           


          9         One-half of the amount reported on petitioner's 1991              
          joint Federal return.                                                       
          10        One-half of the amount claimed on petitioner's 1991 joint Federal 
          return.                                                                     
          11        Head of household filing status requires that the taxpayer who is 
          not married at the close of the year maintain as his home a household which 
          constitutes for more than one-half of the taxable year, the principal place of
          abode of any person who is a dependent of the taxpayer, provided that the   
          taxpayer is entitled to a deduction for such person under section 151.  Sec.
          2(b)(1)(A)(ii).                                                             





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