Franklin and Janetta Hubbart - Page 10

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          value of the boat and carrier of $8,800 instead of the fair                 
          market value petitioners reported; and (4) estimated that the               
          quick-sale value of the fifth wheel camper was $400.  Respondent            
          did not include the value of the life insurance or the 2002 Ford            
          F350 because the loans on the items exceeded their value.                   
          Respondent concluded that petitioners had a total net realizable            
          equity of $234,172.                                                         
               Respondent accepted petitioners’ reported gross monthly                
          income of $7,219.  Respondent made the following adjustments to             
          petitioners’ monthly expenses:  (1) Reduced the housing and                 
          utilities expense from $1,156 to $726 to reflect the actual                 
          documented costs; (2) reduced the transportation expense from               
          $1,212 to $758 because Mr. Hubbart’s medical treatments were                
          completed by the time of the section 6330 hearing and thus an               
          additional allowance for gas was not needed; (3) reduced medical            
          expenses from $1,130 to $912 to reflect actual documented out-of-           
          pocket expenses; and (4) allowed the payments to the State of               
          California Franchise Tax Board only through July 2007 because               
          petitioners estimated that their State tax liability would be               
          paid by that time.  Regarding the possible future increases in              
          expenses outlined in petitioners’ April 9, 2004 letters,                    
          respondent determined that these were “general projections from             
          the taxpayers’ representative and may never, in fact, be                    
          incurred” and thus did not take them into account.                          






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