Johnston v. Commissioner

SEYMOUR, Chief Judge.

William A. Johnston and Verna Lee C. Johnston appeal from a judgment of the Tax Court upholding the Commissioner’s notice of deficiency for federal income taxes due on their 1988 and 1989 joint returns. 1 The deficiency noticed by the Commissioner included $11,913.31 in income tax credit claimed by the Johnstons under sections 46 and 48 of the Internal Revenue Code for sums spent in renovating a residential duplex owned and rented out by the Johnstons. The Commissioner took the position that the Johnstons did not qualify for the tax credit because 1.R.C. § 48(a)(3)…