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itemized deductions, and (3) $25,965 in Schedule E expenses.
After concessions, the parties agreed that petitioners are
entitled to: (1) The $3,000 capital loss, (2) $12,083 in
itemized deductions,2 and (3) the $25,965 Schedule E expenses.
At trial, the only issue remaining with regard to the notice
of deficiency was whether petitioners were entitled to the $1,920
in Schedule C deductions reported on petitioners’ 1996 tax return
and disallowed by respondent. Petitioners, however, raised new
issues at trial by claiming additional deductions for a casualty
loss, charitable contributions, unreimbursed employee expenses,
and Schedule C and E expenses that were neither claimed on their
returns nor raised in the notice of deficiency.
We combine our findings of fact and opinion under each
separate issue heading. Some of the facts have been stipulated
and are so found. The stipulation of facts, the supplemental
stipulations of facts, and the attached exhibits are incorporated
herein by this reference. At the time petitioners filed their
petition, they resided in Phoenix, Arizona.
2 The parties agreed that petitioners are entitled to
deduct the following amounts: (1) $3,263 for taxes, (2) $4,531
for charitable contributions, and (3) $4,289 for unreimbursed
employee expenses. We note that petitioners claimed other
expenses on their Schedule A in the section entitled “Job
Expenses and Most Other Miscellaneous Deductions”. Because
petitioners have not raised any arguments with regard to those
amounts, we treat their failure to raise any assignments of error
as a concession. See Petzoldt v. Commissioner, 92 T.C. 661, 683
(1989).
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