Case ID: bta_11/html/0409-01.html
Source: Caselaw Access Project
Author: {"author": "Littleton:", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

F. Hunt Lowry, Petitioner, v. Commissioner of Internal Revenue, Respondent.
    Docket No. 11972.
    Promulgated April 3, 1928.
    
      F. Hunt Lowry pro se.
    
      A. H. Murray, Esq., for the respondent.
   Littleton:

The Commissioner determined a deficiency of $100.25 for 1919 and a penalty of $25.00 for failure to file a return, and a deficiency of $1,087.58 for the year 1920. Petitioner claims that the Commissioner erred (1) in arbitrarily fixing his income for 1919 in the amount of $3,506.28; (2) in allowing him an exemption of on y $1,000 for the taxable years, whereas he was entitled to an exemption of $2,200; (3) in arbitrarily fixing his income for 1920 at $2,290.45 and determining a profit from the sale of real estate of $11,075.50.

FINDINGS OF FACT.

Petitioner is a resident of Wilmore, Ky., and during the taxable years, was engaged in farming. For the year 1919 petitioner had a total income from his farming operations of $3,499.08 and during that year his ordinary and necessary business expenses, including deductible contributions and depreciation on business property, amounted to $1,354.87. Petitioner ivas the head of a family and his granddaughter under eighteen years of age was entirely dependent upon him for support. He was entitled to a personal exemption of $2,200 for each of the taxable years 1919 and 1920.

For the year 1920 petitioner’s total gross income from his farm amounted to $1,403.78. His ordinary and necessary business expenses amounted to $1,024. In 1920 petitioner sold a farm consisting of 107 acres for $21,400, or $200 an acre. This farm ivas transferred to the petitioner in 1887 by his uncle for a nominal consideration. The fair market value of this farm on March 1, 1913, was $175 an acre, or $18,725.

Petitioner filed no return for 1919 for the reason that he was advised by a representative of a bank in Wilmore that he was liable for no tax and that it was not necessary for him to file a return. It appears that petitioner had no taxable income for 1919 and there is therefore no penalty due for that year.

Judgment toill be entered on 15 days'1 notice, under Rule 50.