- 12 - 2. Additional Schedule A Deductions For reasons similar to those stated above, we agree with respondent that petitioners may not deduct more interest or taxes on their Schedules A than she has allowed. We hold for respondent on this issue. 3. Taxability of Unemployment Compensation Gross income includes unemployment compensation. Sec. 85(a). Given the facts that Mrs. Tillman received $1,152 of unemployment income in 1989, and that petitioners did not report this amount on their 1989 tax return, we must hold for respondent on this issue. 4. Unreported Sales Income Gross income includes income from whatever source derived. Sec. 61(a). Petitioners agree that Trucking received $43,621 and $43,475 in gross receipts from Crawford during 1990 and 1991, respectively, and that petitioners’ tax returns reported only $21,424 of these receipts for 1990 and none of them for 1991. We hold that petitioners failed to report $22,197 in sales income for 1990, and $43,475 in sales income for 1991. 5. Receipt of Insurance Proceeds A taxpayer realizes gain on a conversion (e.g., a loss) to the extent that the insurance proceeds connected thereto exceed the adjusted basis of the underlying property. Sec. 1001(a). 6(...continued) taking title, or in which he has no equity.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011