- 7 -
Income Amount
Wages, salaries, tips, etc. 1$93,582
Taxable interest 152
Ordinary dividends 30
Capital gain or (loss) 2(3,000)
Rental real estate, royalties, 9,736
partnerships, S corporations,
trusts, etc.
Other income 3293,750
Total income $394,250
1Of the $93,582 of total wages reported in petitioners’ 2000
return, The Frederick Painting Company paid $75,381.54 to Mr.
Hartsock and $18,200 to Ms. Hartsock.
2In Schedule D, Capital Gains and Losses, petitioners re-
ported a net short-term capital loss of $283,646 and a net long-
term capital gain of $11.
3The parties agree that the $293,750 of “Other income”
reported in petitioners’ 2000 return consisted solely of peti-
tioners’ gambling winnings.
In petitioners’ 2000 return, petitioners claimed itemized
deductions totaling $309,580. Included in those itemized deduc-
tions was a deduction for $293,022 of claimed gambling losses.
Respondent issued to petitioners a notice of deficiency
(notice) for their taxable years 1999 and 2000. In that notice,
respondent disallowed the gambling loss deductions of $230,825
and $293,022 that petitioners claimed in petitioners’ 1999 return
and petitioners’ 2000 return, respectively. In the notice,
respondent also determined that petitioners are liable for each
of their taxable years 1999 and 2000 for the accuracy-related
penalty under section 6662(a) because of section 6662(b)(1).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011