Anderson v. Commissioner
United States Tax Court
Petitioners are husband and wife residing in California, a community property State. In 1976, they filed a joint return which reported a net capital gain in excess of $ 25,000 and deducted one-half of said gain under sec. 1202, I.R.C. 1954. Thus, their items of tax preference as defined in sec. 57(a)(9)(A), I.R.C. 1954, exceed $ 12,500. Held, the amount over which petitioners' items of tax preference are subject to tax pursuant to sec. 56(a), I.R.C. 1954, is $ 10,000 and not…
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Petitioners are husband and wife residing in California, a community property State. In 1976, they filed a joint return which reported a net capital gain in excess of $ 25,000 and deducted one-half of said gain under sec. 1202, I.R.C. 1954. Thus, their items of tax preference as defined in sec. 57(a)(9)(A), I.R.C. 1954, exceed $ 12,500. Held, the amount over which petitioners' items of tax preference are subject to tax pursuant to sec. 56(a), I.R.C. 1954, is $ 10,000 and not $ 20,000.
1Opinion of the Court
OPINION
Forrester, Judge:
This matter comes before the Court on respondent’s motion for partial summary judgment, pursuant to Rule 121, Tax Court Rules of Practice and Procedure. The sole issue for decision is whether, in the case of a joint return filed by taxpayers who reside in a community property State, the amount over which items of tax preference are subject to tax under section 56(a)1 is $10,000 or $20,000.
Petitioners are husband and wife who resided in Walnut Creek, Calif., at the time the petition herein was filed. They filed a joint Federal income tax return for 1976 with the…
2Cases cited4 opinions
- Taft v. HelveringSupreme Court of the United States · 1940
- Helvering v. JanneySupreme Court of the United States · 1940
- Ross v. CommissionerUnited States Tax Court · 1961
- Tweedy v. CommissionerUnited States Board of Tax Appeals · 1942
3Cited by2 opinions
- Anderson v. CommissionerUnited States Tax Court · 1981
- Dovid & Marcia L. Goldfarb v. Comm'rUnited States Tax Court · 2007