4 services in connection with the 1995 sale of the Chevron gas station business. In 1995, the buyers made payments to petitioner on the $65,000 loan totaling $7,253. Of that amount, $4,054 was interest and $3,199 was principal. Also in 1995, petitioner leased the land and building to the buyers. C. Petitioner’s Other Income in 1995 In 1995, petitioner received taxable pension income of $11,061 and taxable interest income of $42 in addition to the interest from the installment sale of the Chevron gas station business. D. Petitioner’s Returns Alberto S. Nunez (Nunez) prepared and signed (as preparer) petitioner and petitioner’s spouse’s joint 1994 return on August 6, 1996. Petitioner and his spouse also signed that return on August 6, 1996. They claimed no deduction for depreciation related to the Chevron gas station business on their 1994 return. Petitioner applied for and received an automatic 4-month extension to file his 1995 return. Nunez prepared a joint 1995 return for petitioner and his spouse. Nunez signed the 1995 return on August 14, 1996. Petitioner paid Nunez $1,375 to prepare that return. Petitioner and his spouse did not report the sale of the Chevron gas station business on their 1995 return. Petitioner and his spouse reported $615 of tax due onPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011