- 17 - a Schedule K-1, Partner’s Share of Income, Credits, Deductions, etc., for 1985, which reports Mr. Hopkins as a partner in Far West Drilling. We find that the Far West Drilling deductions are Mr. Hopkins’s items. On brief, respondent argues that “Petitioner is not entitled to relief under I.R.C. � 6015(c) for the disallowed casualty losses due to the fact that petitioner owned the residence. Thus, the deficiencies arising from the disallowed casualty losses were due to her own item and she remains liable.” Section 6015(c) requires an allocation of the items giving rise to a deficiency to be made under section 6015(d)(3). Generally, any item giving rise to a deficiency on a joint return shall be allocated to individuals filing the return in the same manner as it would have been allocated if the individuals had filed separate returns for the taxable year. Sec. 6015(d)(3)(A).18 However, section 6015(d)(3)(B) provides an 18Sec. 6015(d)(3) provides in part: SEC. 6015(d). Allocation of Deficiency.--For purposes of subsection (c)-- * * * * * * * (3) Allocation of items giving rise to the deficiency.--For purposes of this subsection-- (A) In general.--Except as provided in paragraphs (4) and (5), any item giving rise to a deficiency on a joint return shall be allocated to individuals filing the return in (continued...)Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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