- 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.
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