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understatement. Kalinowski v. Commissioner, supra. Therefore,
petitioner has not satisfied the requirement of section
6015(b)(1)(C) with respect to the year 1993.
Under section 6015(b)(1)(D), a spouse seeking relief from
joint liability must establish that it is inequitable to hold him
or her liable for the deficiency attributable to the
understatement based upon due consideration of all the facts and
circumstances.
One of the factors to be considered is whether the taxpayer
seeking relief has significantly benefited from the
understatement on the return. Sec. 1.6013-5(b), Income Tax Regs.
Transfers of property to the spouse seeking relief are relevant
in determining the existence of a significant benefit, and such
transfers are not limited to the tax years in which the
understatement relates. Kalinowski v. Commissioner, supra. In
spite of the abusive nature of the marriage over the years,
petitioner acquired numerous tracts of land in her name
individually and in co-ownership with her spouse, Mr. Gurr. She
was awarded those properties in the property settlement with Mr.
Gurr after the two were divorced.
The Court notes that the understatements at issue are based
upon adjustments by respondent to Schedules D of the tax returns
for 1992 and 1993. All these adjustments are related to and
arose out of the real estate activity reported on Schedules C of
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