- 4 -
1995 1996
Community income–-wife’s wages $772 -0-
Exemptions (850) ($2,550)
Interest income from CU 367 -0-
Nonemployee compensation--JLC/CU/Bank 130,783 85,884
Self-employment AGI adjustment (5,546) (5,038)
Standard deduction (3,275) (3,350)
122,251 74,946
Respondent determined Mr. Lobe’s tax liability by using the
married filing separate return tax rates and by imposing upon Mr.
Lobe self-employment taxes of $11,091 and $10,075 for the
respective years as to the nonemployee compensation. Respondent
also gave Mr. Lobe credit for 50 percent of the $94 withheld from
Ms. Lobe’s wages.
Respondent determined that Ms. Lobe had failed to report
taxable income of $61,343 and $37,042 during the respective
years. Respondent determined this income as follows, noting that
because Washington is a community property State, respondent was
treating Ms. Lobe as realizing all of her income and 50 percent
of Mr. Lobe’s income:
1995 1996
Community income-JLC/CU/Bank $65,391 $42,942
Community income/interest from CU 183 -0-
Exemptions (2,500) (2,550)
Wife’s wages 1,544 -0-
Standard deduction (3,275) (3,350)
61,343 37,042
Respondent determined Ms. Lobe’s tax liability by using the
married filing separate return tax rates and by giving her credit
for 50 percent of the $94 withheld from her wages.
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