Joseph D. Wilkins and Mary Wilkins - Page 2

                                        - 2 -                                         
          taxable year in issue, and all Rule numbers refer to the Tax                
          Court Rules of Practice and Procedure.  The Court agrees with and           
          adopts the Special Trial Judge's opinion, which is set forth                
          below.                                                                      
                         OPINION OF THE SPECIAL TRIAL JUDGE                           
               PAJAK, Special Trial Judge:  Respondent determined a                   
          deficiency in petitioners' 1988 Federal income tax in the amount            
          of $9,748, and an addition to tax under section 6653(a)(1) in the           
          amount of $487.  This Court must decide:  (1) Whether petitioners           
          have substantiated deductions claimed on the Schedule C attached            
          to their 1988 Federal income tax return in excess of the amounts            
          allowed by respondent; and (2) whether petitioners are liable for           
          an addition to tax for negligence under section 6653(a)(1).                 
               Some of the facts in the case have been stipulated and are             
          so found.  Petitioners resided in Liverpool, New York, at the               
          time they filed their petition.                                             
               For clarity and convenience, the findings of fact and                  
          opinion have been combined.                                                 
               During 1988, petitioner Joseph D. Wilkins (petitioner)                 
          operated a sole proprietorship known as Golden Rule Furniture,              
          which dealt in wholesale furniture.  Petitioner claimed there was           
          a "big loss" in 1988 because Golden Rule Furniture was a "part-             
          time job".  Petitioner operated the business out of his house,              
          out of his basement, and out of his garage.  He also testified              






Page:  Previous  1  2  3  4  5  Next

Last modified: May 25, 2011