-54-
1981 net profit of $5,525.92 to Maximum Management, which results
in $5,525.92 additional 1981 income to petitioners. Although
self-employment taxes are generally the liability of the taxpayer
earning the income, under section 1.6017-1(b)(2), Income Tax
Regs., the liability with respect to these taxes in the case of a
joint return is joint and several. Thus, Robert, too, is liable
for self-employment tax on the $5,525.92, even though Monica had
the self-employment income.
We have so found, and we so hold.
As we have found, petitioners are taxable on $10,953 of 1981
long-term capital gain resulting from Robert's effort to sell an
interest in SSC to Elliot. Supra M. First Sale of Interest in
Structured Shelters of Cincinnati. In the notice of deficiency,
respondent had determined that "the benefits of capital gains
treatment are not available to you [Robert]." Petitioners, in
their belated 1981 tax return, provided the information that the
gain was $10,953, not the $10,000 determined in the notice of
deficiency. Respondent concedes on brief that the income is
long-term capital gain and that, as a result, 60 percent of the
gain is excluded from income and so only $4,381 is includable in
petitioners' 1981 adjusted gross income on account of this
transaction. This is in accord with petitioners' 1981 tax
return.
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