Ashit Valia and Smita Valia - Page 8

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          fees are includable as income to petitioners, and as a result of            
          the parties stipulation, is also deductible as an itemized                  
          deduction.4                                                                 
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the foregoing and the parties’ stipulation                  
          regarding the deductibility of attorney’s fees,                             
                                                   Decision will be entered           
                                             under Rule 155.                          




















               4  The Supreme Court in Commissioner v. Banks, 543 U.S. __,            
          125 S. Ct. 826 (2005), noted that the American Jobs Creation Act            
          of 2004, Pub. L. 108-357, sec. 703, 118 Stat. 1546, amending the            
          I.R.C. by adding sec. 62(a)(19) was not effective at the time of            
          the transaction.  Since the Act is not retroactive, the Supreme             
          Court did not consider it.  Likewise, we need not consider                  
          whether it might apply to the facts of this case.                           




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