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petitioner was entitled to Schedule A itemized miscellaneous
deductions in the amount of $44,523, rather than the standard
deduction, and respondent further determined that petitioner must
include taxable Social Security benefits of $8,690 in his gross
income for taxable year 2001. The taxable Social Security income
was computed at 85 percent of the total amount of $10,244, which
petitioner received as Social Security benefits during taxable
year 2001.
After the issuance of the notice of deficiency, but before
trial, respondent conceded that he failed to allow petitioner a
personal exemption and understated the allowable itemized
miscellaneous deductions in his computation of the deficiency
reflected in the notice of deficiency.
As previously noted, at trial, respondent conceded that
petitioner was entitled to Schedule A itemized miscellaneous
deductions of $45,333, consisting of $44,833 for gambling losses
incurred by petitioner during taxable year 2001 and $500 for
charitable contributions made by petitioner during taxable year
2001. Respondent also conceded, at trial, that the correct
amount of the deficiency for taxable year 2001 was $1,046.
Discussion
As a general rule, the determinations of the Commissioner in
a notice of deficiency are presumed correct, and the taxpayer
bears the burden of proving the Commissioner’s determinations to
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