Paul S. and Sharon E. Talchik - Page 2

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               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.                              





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