- 2 - The sole issue for decision is whether petitioners are entitled to an itemized deduction for the year 1999 for investment interest under section 163(d)(1) in an amount greater than the amount allowed by respondent in the notice of deficiency. Some of the facts were stipulated, and those facts, with the annexed exhibits, are so found and are incorporated herein by reference. Petitioners' legal residence at the time the petition was filed was Ft. Lauderdale, Florida. Petitioners filed a joint Federal income tax return for 1999. That return included a Schedule A, Itemized Deductions, on which they claimed a deduction of $47,780 for investment interest relating to numerous capital gain transactions reflected on Schedule D, Capital Gains and Losses, of their return. In the notice of deficiency, respondent determined that petitioners were entitled to a $225 deduction for investment interest and disallowed $47,555 of the $47,780 claimed on the return. No other adjustments were made to petitioners' return. 1(...continued) without objection from respondent, to remove the case from consideration under sec. 7463. The Court granted petitioners' motion, and respondent thereafter filed an answer of general denial. The deficiency in the notice of deficiency is $13,974. No concessions have been made by respondent; however, in a posttrial brief, respondent stated the deficiency to be $13,215 with no concessions or explanation for the $756 discrepancy. The Court assumes the $13,215 recited in respondent's brief is in error, and the deficiency at issue is $13,974.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011