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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...)
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