Rockwell Banker - Page 2




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                    Rule references are to the Tax Court Rules of Practice and                                                                                             
                    Procedure.                                                                                                                                             
                              The issues for decision are:  (1) Whether petitioner is                                                                                      
                    entitled to miscellaneous itemized deductions in excess of                                                                                             
                    amounts conceded by respondent, and (2) whether petitioner is                                                                                          
                    liable for an accuracy-related penalty under section 6662(a).                                                                                          
                                                                     FINDINGS OF FACT                                                                                      
                              Some of the facts have been stipulated and are so found.                                                                                     
                    The stipulation of facts and the attached exhibits are                                                                                                 
                    incorporated herein by this reference.  Petitioner resided in                                                                                          
                    Spring Valley, California, when the petition in this case was                                                                                          
                    filed.                                                                                                                                                 
                              Petitioner and Judy Barber (Ms. Barber) were married in                                                                                      
                    October 1994.  Consequently, petitioner resided with Ms. Barber                                                                                        
                    until April 11, 1995.  On April 11, 1995, petitioner moved out of                                                                                      
                    the marital home because of marital difficulties.  Petitioner's                                                                                        
                    marriage to Ms. Barber was annulled on September 21, 1995.                                                                                             
                              Petitioner and Ms. Barber filed a joint Federal income tax                                                                                   
                    return for the year 1994.  On their 1994 Federal income tax                                                                                            
                    return, petitioner and Ms. Barber claimed miscellaneous itemized                                                                                       
                    deductions of $37,066.  In the case of an individual, the                                                                                              
                    miscellaneous itemized deductions for any taxable year shall be                                                                                        
                    allowed only to the extent that the aggregate of such deductions                                                                                       
                    exceeds 2 percent of the adjusted gross income.  See sec. 67(a).                                                                                       






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