Jonathan E. Stromme and Marylou Stromme v. Commissioner

JONATHAN E. STROMME AND MARYLOU STROMME, PETITIONERS v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT Docket No. 14706–09. Filed March 13, 2012. Ps owned two houses during the years at issue. They lived in one of those houses (on LaCasse Drive) and worked (but did not live) in the other house (on Emil Avenue). In the house on Emil Avenue they provided lodging for individuals with developmental disabilities. The county paid sums for the care of these individuals. Ps reported the amounts on their tax returns but then excluded them from income. Held: Ps cannot exclude the payments received to…