- 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