-5-
expenses and for self-employment tax related to Medi-Task are
allocable jointly to Hawthorne and Charlton.
A. Whether the $2,050 of Unclaimed Medi-Task Expenses Are
Allocable Solely to Hawthorne
Charlton contends that the unclaimed Medi-Task expenses are
allocable both to him and Hawthorne. We disagree. Items giving
rise to a deficiency on a joint return are allocated to the
individuals filing the return in the same manner as if the
individuals had filed separate returns. See sec. 6015(d)(3)(A);
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3201, 112 Stat. 734; H. Conf. Rept. 105-
599, at 250-251 (1998), 1998-3 C.B. 747, 1004-1005. “The
allocation of business deductions is expected to follow the
ownership of the business.” S. Rept. 105-174, at 57 (1998),
1998-3 C.B. 537, 593. Thus, Medi-Task deductions are allocable
solely to Hawthorne because only she owned Medi-Task.
Section 6015(d) provides that only “items giving rise to the
deficiency” are allocated as if the individuals had filed
separate returns for the taxable year. See sec. 6015(d)(3)(A).4
4 Sec. 6015(d)(3)(A) provides:
(d) Allocation of deficiency.
For purposes of subsection (c)--
* * * * * * *
(3) Allocation of items giving rise to the
deficiency.--For purposes of this subsection --
(A) In general. Except as provided in
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