Benigno Antonio Gasparutti - Page 6

                                        - 6 -                                         

          State and local, and foreign, real property taxes; (2) State and            
          local personal property taxes; (3) State and local, and foreign,            
          income, war profits, and excess profits taxes; (4) generation               
          skipping transfer tax imposed on income distributions; and (5)              
          environmental tax.  Prior to 1986, section 164(a)(4) allowed a              
          deduction for State and local sales taxes paid during the taxable           
          year.  Section 164(a)(4) was repealed by section 134(a)(1) of the           
          Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2116.                     
               Section 164(a) is clear as to what types of taxes are                  
          deductible by the taxpayer.  We hold that petitioner is not                 
          entitled to deduct Social Security, Medicare, or sales taxes                
          under section 164(a).  The only taxes that are deductible under             
          section 164 are the State and local taxes withheld from                     
          petitioner’s wages.  The total amount of these taxes is less than           
          the standard deduction that respondent allowed ($3,800).                    
          Therefore, the standard deduction will be applied.                          
               Moreover, it is unclear whether and to what extent any                 
          Social Security benefits were repaid by petitioner in 1994.                 
          Nevertheless, even if he did repay $905 in 1994, he is not                  
          entitled to the deduction under section 1341.  Section 1341                 
          provides relief to a taxpayer who received income in 1 year under           

               (1) Federal income taxes, including--                                  
               (A) the tax imposed by section 3101 (relating to the                   
          tax on employees under the Federal Insurance Contributions Act);            

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

Last modified: May 25, 2011