- 34 -
For 1995, respondent made the following adjustments to the
itemized deductions petitioner claimed on the 1995 return:
1995 Itemized Deductions Per Return Per Exam Adjustment
Taxes $11,610 $11,865 ($255)
Home mortgage interest 23,476 32,871 (9,395)
Contributions -0- 330 (330)
Total 35,086 45,066 (9,980)
For 1996, respondent determined that the standard deduction
was less than petitioner’s itemized deductions and made the
following adjustments for itemized deductions:
1996 Itemized Deductions Per Return Per Exam Adjustment
Standard deduction $6,700 -0- $6,700
Itemized deductions
Taxes -0- $303 (303)
Home mortgage interest -0- 8,242 (8,242)
Total 6,700 8,545 (1,845)
Aside from petitioner’s claim that the taxes13 and mortgage
interest were trade or business expenses deductible on Schedules
C for his and Mrs. Wood’s business as dealers in real estate,
petitioner does not challenge respondent’s adjustments for
itemized deductions. We have found that petitioner and Mrs. Wood
are not dealers in real estate, and, therefore, we sustain
respondent on this issue.
13Respondent allowed petitioner to deduct on the consulting
business Schedule C 10 percent of the taxes as a home office
expense of Mr. Wood’s consulting business.
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011