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Year Deficiency Penalty Sec. 6663
19901 $192,954 $144,715.50
1991 71,337 53,502.75
1992 56,075 42,056.25
1The notice of deficiency for 1990 states the amounts listed above. In
his answer, respondent decreased the deficiency amount and fraud penalty for
1990 to $172,655 and $129,491.25, respectively.
After concessions,2 the issues to be decided for 1990, 1991, and
1992, are as follows:
(1) Whether, and to what extent, petitioner received and
failed to report income;
(2) whether petitioner is entitled to various adjustments to
reconstructed income not claimed on his returns;
1(...continued)
the Internal Revenue Code in effect for the years at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2Respondent concedes that for 1990, petitioner is entitled
to deduct $64,679 in expenses associated with the Tri-City Truck
Parts partnership, and petitioner concedes that his distributive
share of income from Tri-City Truck Parts is $41,105. Respondent
concedes that the sec. 6663 penalty for 1990 does not apply to
the tax attributable to the Tri-City Truck Parts and Equipment
(Tri-City) adjustment of $41,105. Additionally, respondent
concedes petitioner’s entitlement to a partnership loss deduction
for the BAMA Equipment partnership of $26,046 for 1991 and a loss
deduction of $8,777 for 1992. Similarly, petitioner agrees that
he is not entitled to a casualty loss deduction of $25,020 on his
Schedule A, Itemized Deductions, for 1992. Respondent agrees
that the fraud penalty does not apply to tax attributable to this
adjustment.
At trial, the parties stipulated that petitioner’s share of
the rental income from PSB Trucking with regard to the Boscell
Road property for 1990 is $46,200, rather than the amount
petitioner reported, $50,400. On brief, respondent concedes that
petitioner is entitled to a capital loss of $3,000 for 1992, with
respect to the BAMA Equipment partnership.
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