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Roger D. Lorence, for petitioners.
Stephen R. Takeuchi, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
WHERRY, Judge: Respondent determined a Federal income tax
deficiency for petitioners’ 2000 taxable year in the amount of
$167,221 and a penalty pursuant to section 6662(a) in the amount
of $33,444.1 After concessions, the principal issues for
decision are:
(1) Whether petitioners are entitled to report claimed gains
and losses in ordinary income on account of an alleged business
of petitioner Lee B. Arberg (Mr. Arberg) as a trader in
securities within the meaning of section 475(f)(1);
(2) whether petitioners are entitled to deduct various
business expenses claimed in connection with the securities
trading and/or a consulting business of Mr. Arberg; and
(3) whether petitioners are liable for the section 6662(a)
accuracy-related penalty for 2000.
Certain additional adjustments; e.g., to itemized deductions, are
computational in nature and will be resolved by concessions made
and our holdings on the foregoing issues.
1 Unless otherwise indicated, section references are to the
Internal Revenue Code of 1986, as amended and in effect for the
year in issue, and Rule references are to the Tax Court Rules of
Practice and Procedure.
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