- 4 - Eric, petitioner’s grandson, moved in with petitioner in the latter half of 1996. Eric’s parents paid for all of Eric’s clothing. Petitioner paid for Eric’s food and gave Eric presents. Petitioner did not file a Federal income tax return for 1993. Petitioner filed his 1995 return on June 29, 1998. Petitioner deducted $4,135 for investment interest and $6,129 for other expenses on Schedule A, Itemized Deductions. Petitioner also reported on Schedule E, Supplemental Income and Loss, a loss of $10,202 related to the house in the Bahamas. Petitioner filed his 1996 return claiming head-of-household filing status on August 3, 1998. Petitioner reported a loss of $10,758 on Schedule E related to the house in the Bahamas. Petitioner timely filed his 1997 return. Petitioner reported a loss of $10,333 on Schedule E related to the house in the Bahamas. Respondent mailed a notice of deficiency to petitioner on January 7, 2000, for tax years 1993, 1996, and 1997, and a separate notice on the same day for tax year 1995. Respondent determined that petitioner failed to report interest income from the tax certificates of $49,805, $19,249, $14,656, and $6,603 for 1993, 1995, 1996, and 1997, respectively. Respondent assertsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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