Brenda J. Clarrk - Page 6

                                        - 5 -                                         
               For the year 2000, petitioner and Mr. Clark filed a joint              
          Federal income tax return on which they reported the following              
          income and deductions:                                                      

               Wages and salary                                  $27,007              
               Taxable interest                                       17              
               Loss, Schedule C, Profit or Loss From Business    (10,607)             
               Total income                                    $16,417                
               Itemized deductions                               (10,741)             
               Dependency exemptions                              (5,600)             
               Taxable income                                  $    76                

               Of the items listed above, the $10,607 Schedule C loss came            
          from a trade or business activity of Mr. Clark.  Of the $27,007             
          in wage and salary income, $24,906.91 represented petitioner’s              
          earnings and $2,100 represented earnings of Mr. Clark.                      
               For the year 2001, petitioner and Mr. Clark filed a joint              
          return in which they reported the following income:                         

                    Wages and salary              $41,660                             
                    Taxable refunds                 1,218                             
                    Total income                $42,878                               

          Of the wage and salary reported, $25,350 represented petitioner’s           
          wage and salary income and $16,310 represented wages and salary             
          of Mr. Clark.                                                               



               3(...continued)                                                        
          $20,000 to replace the roof of their Idaho residence, which                 
          presumably was an improvement that would facilitate its sale in             
          connection with petitioner and Mr. Clark’s move from Idaho to               
          Utah.                                                                       





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