Kluener's 1989 Federal income taxes (Robert G. Kluener and Charlotte J. Kluener are sometimes hereinafter referred to as the Klueners, Robert G. Kluener is referred to individually as Mr. Kluener, and Charlotte J. Kluener is referred to individually as Ms. Kluener). Unless otherwise noted, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. After concessions, the issues remaining for decision are whether petitioners are liable for: (1) Income tax on the gain realized from the sales of certain horses that Mr. Kluener transferred2 to his wholly owned corporation prior to the sales; and (2) the accuracy-related penalty provided by section 6662(a) for a substantial understatement of income tax. FINDINGS OF FACT Some of the facts have been stipulated for trial pursuant to Rule 91. The parties' stipulations of fact are incorporated herein by reference and are found as facts in the instant case. Mr. Kluener died on October 14, 1991. At the time the petition in the instant case was filed, the executors of Mr. Kluener's estate were Donald E. Hathaway (Mr. Hathaway), who 1(...continued) of deficiency. Respondent accordingly determined the deficiency and penalty in issue against his estate. 2 The use of the words "transfer", "receive", "receipt", "pay", and similar terms to describe the form of the transaction in issue does not indicate that we accept that the substance of that transaction accords with its form.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