Shuang-Di Sun Bennett - Page 13

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          married person during the marriage while domiciled in California.           
          Cal. Fam. Code sec. 760 (West 2004).  Under California law, there           
          is a rebuttable presumption that all property acquired during               
          marriage is community property.  Hanf v. Summers, 332 F.3d 1240,            
          1242-1243 (9th Cir. 2003); Haines v. Haines, 39 Cal. Rptr. 2d               
          673, 681 (Ct. App. 1995).  It follows that there is a rebuttable            
          presumption that all income derived during the marriage while               
          domiciled in California is community property.  See, e.g., Dooley           
          v. Commissioner, T.C. Memo. 1992-39.  Since Federal income tax              
          liability follows ownership with respect to income, there is a              
          rebuttable presumption that any income derived in a marriage in             
          California is taxable as community income.  See United States v.            
          Mitchell, supra at 197.                                                     
               Spouses who reside in a community property State may file              
          either a joint Federal income tax return or separate Federal                
          income tax returns.  If separate returns are filed, then                    
          generally each spouse must report and pay tax on one-half of the            
          community income, regardless of whether the spouse actually                 
          received that income.  Id. at 196-197; Hardy v. Commissioner, 181           
          F.3d 1002 (9th Cir. 1999), affg. T.C. Memo. 1997-97; Bernal v.              
          Commissioner, 120 T.C. 102, 105-106 (2003).                                 
               B.  Petitioner’s Community Income                                      
               The potential sources of community income in this case are:            
          (1) The items of income reported on petitioner’s return totaling            

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