- 2 - all Rule references are to the Tax Court Rules of Practice and Procedure. After concessions by the parties,1 the issues remaining for decision are: (1) Whether petitioner had unreported income from her trucking business of $25,6482 as determined by respondent or some lesser amount; (2) whether respondent properly increased petitioner's net rent income by $6,166; (3) whether petitioner had gain of $2,350 or some lesser amount from the sale of a truck held for use in her trucking business; and (4) whether petitioner is liable for the accuracy-related penalty pursuant to section 6662(a). We hold that petitioner had $17,449 of unreported income, reflecting a reduction of $8,199 that petitioner received from nontaxable sources. We hold that petitioner had additional net rent income of $6,134 and gain of $2,350 on the sale of her truck. Finally, we hold that petitioner is liable for the accuracy-related penalty. 1 Petitioner claimed a $2,117 income tax credit for the purchase of a diesel-powered vehicle and for the purchase of gasoline and diesel fuel pursuant to sec. 34. Respondent disallowed the credit in the statutory notice of deficiency. On brief, petitioner conceded that she is not entitled to the fuel tax credit under sec. 34. Petitioner also claimed the earned income credit. Whether petitioner is eligible for the earned income credit, taking into account the increase to petitioner's income resulting from this decision, is to be determined in the Rule 155 computation. Respondent's concessions relate to the reconstruction of petitioner's income and are explained below. 2 All dollar figures are rounded to the nearest dollar.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011