Ivor F. and Debra A. Benci-Woodward, et al. - Page 1

                                 T.C. Memo. 1998-395                                  

                               UNITED STATES TAX COURT                                

            IVOR F. AND DEBRA A. BENCI-WOODWARD, ET AL.,1 Petitioners v.              
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket Nos. 3769-96, 4185-96,        Filed November 9, 1998.           

                    In these consolidated cases, R determined                         
               deficiencies in Ps' Federal income taxes for their 1992                
               taxable year due to their failure to include in gross                  
               income certain punitive damages and interest arising                   
               out of a State court lawsuit.  (Ps now concede that all                
               amounts received as punitive damages, plus interest,                   
               are includable in gross income as determined by R.  See                
               O'Gilvie v. United States, 519 U.S. 79 (1996).)  R                     
               allowed Ps miscellaneous itemized deductions for legal                 
               fees and costs attributable to their punitive damages                  
               awards pursuant to sec. 67, I.R.C.  However, in                        
               computing Ps' alternative minimum tax (AMT)                            
               adjustments, R disallowed their miscellaneous itemized                 
               deductions pursuant to sec. 56(b)(1)(A)(i), I.R.C.                     

               1  Cases of the following petitioners are consolidated                 
          herewith:  Laurentz J. and Barbara Mangum, docket No. 4185-96,              
          and Jose and Dianne M. Ragatz, docket No. 8265-96.                          

Page:   1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011