- 34 -
insurance premiums that HMI paid on her behalf. And in
1997, section 162(l)(1)(B) set that percentage at 40.10
To reflect the foregoing and incorporate other
stipulated issues,
Decision will be entered
under Rule 155.
10 The Commissioner also contends that the Hursts are liable
for a penalty under section 6662--either for negligence under
sections 6662(b)(1) and (c) or for substantial understatement un-
der sections 6662(b)(2) and (d). Because we find almost entirely
in the Hursts’ favor, there is no substantial understatement.
The Hursts’ partial victory on the minor issue of calculating
the taxable portion of Mrs. Hurst’s medical insurance premiums
showed no failure in reasonably complying with the Code on that
score, either. The penalty is not sustained. See sec. 6664(c);
sec. 1.6664-4(b)(1), Income Tax Regs.
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