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Although petitioner does not argue on brief in support of
his position that 1979 reported income should be reduced by
$348,350 attributable to a "claim of right" adjustment or that
his 1981 income tax calculation should be based upon section
1341, he requests the Court to so find in his proposed findings
of fact. An analysis clearly shows that petitioner is not
entitled to a reduction in 1979 nor to tax computation relief in
1981.
The parties agree that on petitioner's 1979 tax return he
included in income approximately $1.6 million that he had in his
possession representing commission income he received from
manufacturers in prior years. On the return he reported that
this amount was includable in income because he had determined
that he would not transmit the funds to Mr. Khalatbari or Diesel
Power because of their disputes. In an amended return petitioner
claims the income previously reported should be reduced by
$348,350, with the explanation that he did not receive as much as
he thought he would in the sale of Diesel Power stock. The fact
that there was a dispute over the sale price for the Diesel Power
stock has nothing to do with the claim of right petitioner
exercised over commissions that he earned and held in his
possession during 1979 and prior years. They are two separate
items. Petitioner still retained the commission funds; the stock
sale dispute was over the price for disposition of his capital
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