Daniel E. and Karen A. Harkins - Page 1
















                                 T.C. Memo. 2001-100                                  


                               UNITED STATES TAX COURT                                


                   DANIEL E. AND KAREN A. HARKINS, Petitioners v.                     
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 15623-99.                   Filed April 26, 2001.           

               Tim A. Tarter, for petitioners.                                        
               John W. Duncan and Ann M. Welhaf, for respondent.                      

                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               VASQUEZ, Judge:  Respondent determined a deficiency of                 
          $111,311 in petitioners' 1996 Federal income tax.  After various            
          concessions,1 the issues presented to us are (1) whether                    


               1  We summarily describe certain concessions not discussed             
          in the Findings of Fact.  Petitioners stipulate that they must              
          include in income $8,658 for fringe benefits received from                  
          Harkins Amusement Enterprises, Inc. (in the form of paid medical            
          insurance premiums), while respondent allows a partially                    
          offsetting health insurance deduction of $2,597 for self-employed           
                                                             (continued...)           





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