Lucine Williams - Page 2

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          180, 181, and 183.1  The Court agrees with and adopts the opinion            
          of the Special Trial Judge, which is set forth below.                        
                          OPINION OF THE SPECIAL TRIAL JUDGE                           
               NAMEROFF, Special Trial Judge: Respondent determined a                  
          deficiency in petitioner’s 1991 Federal income tax in the amount             
          of $8,348, an addition to tax under section 6651(a)(1) in the                
          amount of $99, and an accuracy-related penalty under section                 
          6662(a) in the amount of $1,670.  After concessions by the                   
          parties, the issues to be decided are:  (1) Whether petitioner is            
          entitled to a fuel tax credit of $8,249; and (2) whether                     
          petitioner is liable for the accuracy-related penalty.                       
               Petitioner resided in Gardena, California, at the time he               
          filed his petition.  Petitioner filed his 1991 Federal income tax            
          return reflecting taxable interest income of $563, a Schedule E              
          partnership loss of $42,168, a net operating loss carryover of               
          $153,486, and itemized deductions of $10,696.  Petitioner also               
          reported rental income of $6,600 and claimed rental expenses of              
          $5,638, resulting in a net income from rentals of $962.  For some            
          unexplained reason, the $962 profit was not carried forward to               
          the face of the Form 1040.  In the notice of deficiency,                     
          respondent disallowed the Schedule E partnership loss, the net               
          operating loss deduction, and reduced the itemized deductions by             

          1  All section references are to the Internal Revenue Code                   
          in effect for the year in issue.  All Rule references are to the             
          Tax Court Rules of Practice and Procedure.                                   




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