PURSUANT TO INTERNAL REVENUE CODE
SECTION 7463(b),THIS OPINION MAY NOT
BE TREATED AS PRECEDENT FOR ANY
T.C. Summary Opinion 2006-47
UNITED STATES TAX COURT
DAVID M. SEARS AND CAROL L. McCABE, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7980-04S. Filed April 3, 2006.
David M. Sears and Carol L. McCabe, pro sese.
Daniel J. Parent, for respondent.
PANUTHOS, Chief Special Trial Judge: This case was heard
pursuant to the provisions of section 7463 of the Internal
Revenue Code in effect at the time the petition was filed. The
decision to be entered is not reviewable by any other court, and
this opinion should not be cited as authority. Unless otherwise
indicated, subsequent section references are to the Internal
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1 Petitioners concede the following Schedule C, Profit or
Loss From Business, expenses: $100 of commissions and fees
expense, $1,322 of employee benefit programs expense, $31 of
other interest expense, and $12 of taxes and licenses expense.
They also concede that petitioner David Sears received $768 of
nonemployee compensation. Respondent concedes that petitioners
paid $10,149 of home mortgage interest and $1,115 of real estate
2 Petitioners now claim additional expense deductions
beyond those claimed on their Schedule C. Based on our
resolution of the first issue in this case, infra, we need not
address whether they are entitled to deduct additional Schedule C
expenses. Respondent also adjusted petitioners’ Schedule A,
Itemized Deductions, for mortgage interest paid and property
taxes paid. These adjustments are computational; therefore, we
need not address them.
Revenue Code in effect for the year in issue, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioners’ 2000
Federal income tax of $2,115. After concessions by the parties,1
the issues for decision are: (1) Whether petition