Douglas A. Gibson - Page 6

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          alternative housing, moving, storage or packing costs, temporary            
          housing costs, any costs of commuting to and from work in excess            
          of those that would have been incurred commuting to and from the            
          denied housing; and (6) whether the claimant provided evidence of           
          any other compensable loss.                                                 
               Petitioner received $175,000 of the $350,000 awarded to him,           
          his wife’s estate, and his children.  Petitioner engaged an                 
          experienced tax attorney who met with the class action attorneys            
          to obtain all the pertinent facts and circumstances.  After                 
          reviewing the information, the tax attorney advised petitioner to           
          report $12,500 of the $175,000 as “other income” and to label it            
          “damages” on petitioner’s 2002 Form 1040, U.S. Individual Income            
          Tax Return.  Petitioner took his tax attorney’s advice and                  
          reported on his 2002 return $12,500 of the $175,000 in damages he           
               In the notice of deficiency, respondent determined that the            
          entire amount of the settlement was includable in petitioner’s              
          gross income.  Additionally, respondent determined an accuracy-             
          related penalty of $9,956 related to petitioner’s failure to                
          report $162,500 of the settlement proceeds.                                 

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