- 7 -
deposits method to make the relevant income adjustments.
Proportionate shares of these adjustments with respect to
petitioner's interests in these entities were reflected in the
notice of deficiency issued to petitioner.
In the notice of deficiency for 1991, 1992, and 1993,
respondent made the following adjustments to petitioner's income:
Adjustment to Income
(Increase/(Decrease)) 1991 1992 1993
Special Occasions $ 1,967 $ 5,888 $ 6,285
Klyce Day Care 4,989 1,989 3,200
Special O income 10,237 10,374 14,866
Sec. 179 depreciation1 -- -- (211)
Sweets 'N' Things (1,833) (1,586) (998)
Self-employment tax ded.2 -- (105) (184)
Net increase in income $15,360 $16,560 $22,958
1 Allowed in connection with Special O.
2 Respondent determined that petitioner was liable for
self-employment taxes of $210 for 1992 and $367 for 1993.
Prior to trial, the parties stipulated to each item of
income and expense in connection with Sweets 'N' Things for 1991,
1992, and 1993, with the exception of a supply and equipment
expense deduction for 1991 and a food expense deduction for 1992.
With respect to Special Occasions, the parties stipulated that
Special Occasions did not sustain a loss for 1991. The parties
further stipulated each item of income and expense in connection
with Special Occasions for 1992 and 1993, with the exception of
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