Paul Trans and Thuy Bich Dang - Page 2




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                                   Addition to Tax     Penalties                      
               Year      Deficiency     Sec. 6651(a)(1)     Sec. 6662(a)              
               1992      $7,892              $463           $1,578                    
               1993      68,182              ----           13,636                    
               1994      70,526              ----           14,105                    


               After concessions,2 the issues for decision are:                       
               (1) Whether petitioners sold their personal residence in               
          Danville, California (the Danville property) in April 1992,                 
          resulting in capital gain and disallowance of deductions for                
          mortgage interest accruing after that date;                                 
               (2) whether petitioners are entitled to claim losses for tax           
          years 1992 and 1993 with respect to certain rental real property            
          they owned in San Jose, California (the San Jose property);                 
               (3) whether petitioners had legal or equitable ownership of            
          certain real property in Milpitas, California (the Milpitas                 
          property) so as to support their claimed deductions for mortgage            
          interest and property taxes with respect to the property for tax            
          year 1994;                                                                  

               2 Respondent disallowed petitioners’ unreimbursed employee             
          expense deductions in the amounts of $5,508, $9,119, and $9,158,            
          for 1992, 1993, and 1994, respectively.  Respondent also asserted           
          a penalty under sec. 6651(a)(1) for petitioners' failure to                 
          timely file their 1992 joint Federal income tax return.                     
          Petitioners failed to address these issues both at trial and on             
          brief.  We treat petitioners’ failure to press these issues as,             
          in effect, conceding them.  See Rule 151(e)(4) and (5);                     
          Sundstrand Corp. & Subs. v. Commissioner, 96 T.C. 226, 344                  
          (1991); Rybak v. Commissioner, 91 T.C. 524, 566 n.19 (1988);                
          Money v. Commissioner, 89 T.C. 46, 48 (1987).  The parties                  
          conceded several other issues in the stipulation of settled                 
          issues.                                                                     



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