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For the first offer, respondent accepted petitioner’s
claimed amount of monthly business net income but determined
petitioner’s allowable living expenses to be $433 on the basis of
the national standard expenses table amount. For the second
offer, respondent determined petitioner’s net monthly business
income to be $3,108, on the basis of petitioner’s claimed revenue
and expenses after disallowing some expenses that were double-
counted as both business and personal expenses. To estimate
petitioner’s living expenses, respondent first computed
petitioner’s and his wife’s shares of monthly income, on the
basis of the recomputed $3,108 income and petitioner’s wife’s
$1,638 of Social Security and interest income reported for her
2000 taxable year. On the basis of this information, respondent
determined that petitioner generated 65 percent of the income and
petitioner’s wife generated 35 percent of the income.
Respondent then applied this percentage to recompute
petitioner’s expenses on the basis of petitioner’s own
calculations or amounts indicated for local or national
standards. Respondent allowed the full amount of the claimed
life insurance expense but prorated petitioner’s claimed health
insurance premium and taxes by 65 percent. Also, respondent
allowed the full Broward County local standard amount for
transportation but allowed only a 65-percent prorated amount of
the local standard for housing and of the national standard
expense.
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Last modified: May 25, 2011