Charles E. and Sherrie R. Strange v. Commissioner

114 T.C. No. 15

UNITED STATES TAX COURT CHARLES E. AND SHERRIE R. STRANGE, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 8602-98. Filed March 29, 2000. Ps paid State nonresident income tax to nine States on net royalty income derived from their interests in oil and gas wells located within those States. Ps reported all their royalty income on Schedules E, Supplemental Income and Loss, which they attached to their Federal income tax returns. In calculating their total net royalty income, petitioners deducted the State income taxes they paid. Consequently, petitioners…