- 3 - tax credit. Petitioners concede in the stipulation that they are not entitled to a miscellaneous itemized deduction of $89.10 claimed on Schedule A. However, the $89.10 miscellaneous itemized deduction was one of the computational errors that resulted in the $9,481 of tax previously assessed pursuant to section 6213(b)(1). The parties further stipulated that petitioners made a total of $70,308.20 in Federal tax payments for the year at issue.2 At trial, the parties orally stipulated that $32,029 of gain from the sale of business real estate which was not included in income on petitioners’ tax return is includable in income as a capital gain. The testimony of Philip Skalka (petitioner) corroborated this further stipulation. However, the parties dispute at which capital gains tax rate the $32,029 capital gain is to be taxed. After the trial, respondent filed an answer seeking an increased deficiency of $8,006, for a total deficiency of $12,866. See sec. 6214(a). It is well established that the Court has jurisdiction to review an increased deficiency asserted by the Commissioner at or before the hearing or rehearing. Sec. 2 Respondent’s recalculation of petitioners’ tax liability reflects that petitioners made only $69,829 in Federal tax payments for 1997. In accordance with the holding in this opinion, respondent shall apply the stipulated tax payment amount of $70,308.20 when preparing the Rule 155 computation.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011