James R. Palmer and Linda D. Palmer - Page 41




                                       - 41 -                                         
        ers’ Schedule C gross receipts for 1995 by an additional $5,100.              
        Petitioners dispute that determination.                                       
             In support of their joint return position with respect to the            
        $5,100 of Loomis residence monthly payments, petitioners contend,             
        inter alia:  “As the funds from Olin were conditional on the                  
        rental of Petitioners’ home and the amount of those funds were                
        [sic] determined by the amount of rent the tenant paid, the funds             
        should be characterized as rental income.”                                    
             On the record before us, we reject petitioners’ contention.              
        The fact that the Loomis residence monthly payment was agreed to              
        in the Marion plant/Palmer consulting agreement because petition-             
        ers were renting their Loomis residence while Mr. Palmer was                  
        consulting at the Marion plant does not require us to accept                  
        petitioners’ contention that the Loomis residence monthly payments            
        in question constitute rent.  Nor does the fact that the amount of            
        the Loomis residence monthly payment was determined as the approx-            
        imate difference between (1) the monthly rent that petitioners                
        were to receive on their Loomis residence throughout the period               
        during which Mr. Palmer was consulting at the Marion plant and                
        (2) the total amount of monthly mortgage, insurance, and mainte-              
        nance expenses that they were to pay on that residence throughout             
        that period require us to accept that contention.                             
             In order to resolve the question presented with respect to               
        the $5,100 of Loomis residence monthly payments in question, we               






Page:  Previous  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  Next

Last modified: May 25, 2011