- 2 -
Respondent determined deficiencies of $3,983 and $7,182 in
petitioners' Federal income taxes, respectively, for 1998 and
1999 and corresponding penalties under section 6662(a) in the
amounts of $797 and $1,436.
Some of the facts were stipulated, and those facts, with the
annexed exhibits, are so found and are incorporated herein by
reference. At the time the petition was filed, petitioners'
legal residence was Albuquerque, New Mexico.
For each of the years in question, petitioners claimed
itemized deductions on a Schedule A, Itemized Deductions, of
their Federal income tax return. For 1998, petitioners claimed
itemized deductions totaling $19,380, which were totally
disallowed by respondent. For 1999, petitioners deducted
$36,214, of which $25,655 was disallowed by respondent.
Petitioners were allowed itemized deductions for 1999, since the
total of their other claimed and allowed deductions exceeded the
standard deduction under section 63(c); however, for 1998,
petitioners were allowed the standard deduction in lieu of
itemized deductions. For the 2 years at issue, the disallowed
deductions consisted of charitable contributions, job expenses,
and other miscellaneous deductions. In addition, for 1998,
respondent disallowed a dependency exemption deduction and
disallowed itemized deductions, for that year, of $894 for taxes
and $2,743 for interest. At trial, respondent conceded the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011