- 5 - After concessions,2 the issues for decision are: (1) Whether petitioners are entitled to deduct claimed Schedule E expenses as follows: Property A Property B Advertising $350 $350 Auto and travel 850 4,500 Cleaning and maintenance 2,000 3,000 Insurance 1,200 1,800 Mortgage interest 7,484 13,462 Repairs 6,500 12,000 Supplies 2,000 900 Taxes 1,404 1,404 Utilities 3,000 3,000 Total 24,788 40,416 (2) whether petitioners are entitled to claim Schedule A itemized deductions as follows: Medical and dental expenses $25,000 Home mortgage interest 13,642 Charitable contributions by cash or check 18,000 Charitable contributions other than by cash or check 500 Unreimbursed employee expenses 13,500 Total 70,642 (3) whether petitioners failed to report rental income; (4) whether petitioners are entitled to claim five dependency exemption deductions; and (5) whether petitioners are liable for the accuracy-related penalty under section 6662(a). 2 Petitioners concede that they are not entitled to claim: (1) A $1,404 Schedule A deduction for real estate taxes; (2) a $150 Schedule A deduction for personal property taxes; (3) any expenses with respect to “Property C”, as listed on Schedule E of their 2002 return; (4) passive activity losses of $81,120. Petitioners are also not contesting the increase in their alternative minimum tax.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008