- 9 - A. Unreported Income Gross income includes all income from whatever source derived, specifically including gross income derived from business, gains derived from dealings in property, and rents. Sec. 61(a)(2), (3), (5). Petitioner admittedly concedes by way of the stipulation of facts and his own testimony that he received unreported income in excess of the adjustments in the notice of deficiency. Specifically, petitioner admitted that he received unreported gross receipts or sales of $1,891 and rental income in the aggregate amount of $9,112. With respect to the amount of rental income, we note that petitioner conceded the adjustments in the notice of deficiency in the amounts of $2,380 and $642. The first amount is consistent with the amount of rental income reported on petitioner’s revised Form 1040 for the Yellow Wood property. The latter amount of $642 appears to be included in the total rental income amount of the other 2 properties. Therefore, we limit the amount of unreported rental income to $6,090 (i.e., $3,960 + $2,772 - $642). Accordingly, we conclude that petitioner received unreported gross receipts or sales of $1,891 and unreported rental income of $6,090 in excess of that determined by respondent in the notice of deficiency.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