- 6 -
petitioner, but it is not clear whether petitioner received a
copy of this Form 1099.
Also for 2000, UCLI submitted to respondent a Wage and Tax
Statement, Form W-2, Wage and Tax Statement, with regard to the
$22,230 paid to petitioner, and petitioner received a copy of
this W-2.
Without consulting a tax professional and apparently under
the impression that the disability benefits he received in 2000
did not constitute taxable income, petitioner did not file a
Federal income tax return for 2000.
On his 2000 individual Federal income tax return, Peterson
claimed an interest deduction in the amount of the total monthly
mortgage payments that were made on the property in 2000.
In May of 2002, petitioner obtained a $100,000 mortgage on
the property, and Peterson’s mortgage was paid off. Petitioner
exercised the option to purchase the property and paid Peterson
the required $5,000 exercise price. The legal title to the
property was then transferred from Peterson to petitioner.
Upon audit, respondent determined that petitioner’s 1999
Federal income tax liability was $13,236. Petitioner remitted
this amount to respondent plus penalties and interest.
At respondent’s request, on October 9, 2002, petitioner
filed his 2000 individual Federal income tax return, upon which
he reported zero taxable income.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011