- 2 - Accuracy-related penalty Year Deficiency sec. 6662(a) 1993 $3,803 $761 1994 17,323 3,465 After concessions,1 the sole issue2 for consideration is whether certain professional fees incurred by petitioner in connection with litigation involving a trust of which she was a trustee and beneficiary were deductible under section 212 or were capital 1Respondent has conceded the following: (a) Petitioner is entitled to deduct legal and other professional fees of $5,806 and legal and accounting fees of $2,974 relating to "Rent-Red Stevens, Inc." as claimed on petitioner's 1993 return; (b) of the $1,859 in fees claimed on petitioner's 1993 return, petitioner is entitled to deduct $665 on Schedule E and $845 on Schedule A; (c) of the $13,569 in fees claimed on petitioner's 1994 return, petitioner is entitled to claim $927 on Schedule E; and (d) petitioner is not liable for the accuracy-related penalty authorized by sec. 6662 for either of the years at issue. Petitioner has conceded the following: (a) Petitioner is not entitled to charitable contribution deductions in excess of $1,006 and $6,424 with respect to taxable years 1993 and 1994 respectively; and (b) petitioner's medical expenses for the taxable year 1993 total $13,734, not $12,654. Other adjustments at issue in this case (i.e., adjustments to itemized deductions and dependency exemptions) are computational. 2Respondent's statement of the issues presented differs from petitioner's in one material respect. Respondent states that an issue has been raised concerning the deductibility of the professional fees under sec. 162. Petitioner, however, has stated consistently throughout her opening and reply briefs that it is not necessary to address whether she was in the trade or business of being a trustee, preferring instead to argue her case under sec. 212 and related regulations. Because petitioner has not presented any argument regarding sec. 162, we do not address it.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011