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Respondent determined a deficiency in Federal income tax of
$2,344 and a penalty under section 6662(a) in the amount of $469
with respect to petitioner's 1996 tax year.
After concessions by the parties, the issues for decision
are: (1) Whether petitioner, under section 1211(b), has
established his entitlement to a deduction of $3,000 as a long-
term capital loss, and (2) whether petitioner is liable for the
penalty under section 6662(a).2
Some of the facts were stipulated. Those facts, with the
exhibits annexed thereto, are so found and are made part hereof
by reference. At the time the petition was filed, petitioner's
legal residence was Pocatello, Idaho.
Petitioner was a professor of European history at Idaho
State University at Pocatello, Idaho. Petitioner is also an
attorney and was a member of the bars of the States of Idaho and
Oregon. He was admitted to practice before various courts.
However, petitioner was engaged only minimally in the practice of
law.
2
At trial, petitioner conceded the disallowance in the notice
of deficiency of $3,154 of miscellaneous itemized deductions
relating to a payment of $5,000 by petitioner for settlement of
litigation that had been instituted against him by a credit
union. Additionally, at trial, the parties reached a basis of
settlement in connection with $8,840 in rental expenses claimed
by petitioner on Schedule E, Supplemental Income and Loss, of his
1996 return.
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