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income tax of $727 for the taxable year 1997.
After concessions by petitioner,1 the sole issue for
decision is whether petitioner’s Schedule C, Profit or Loss from
Business, net profit is subject to self-employment tax.
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time of filing the
petition, petitioner resided in Brandywine, Maryland. Petitioner
was 67 years old during the year in issue.
Since 1977, and including the year in issue, petitioner has
been in the business of operating a dump truck as an independent
contractor. In 1997, petitioner contracted his services to a
company that washed and sold sand and gravel. Payments were made
to petitioner based on the number of loads carried.
Petitioner was also in the military for approximately 21
years. During the year in issue, petitioner was retired from
military service and was receiving a military pension and Social
Security benefits.
Petitioner timely filed his income tax return for the
taxable year 1997 reporting $5,400 in Schedule C income from his
business as an independent contractor. Petitioner also reported
taxable pensions and annuities of $11,966.40.
1 Petitioner concedes that he failed to include $93 of
capital gain dividends and $71 of ordinary dividends received
from the Fidelity-Equity Income Fund.
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