Trotter v. Department of Revenue
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IN THE OREGON TAX COURT MAGISTRATE DIVISION Income Tax DOUGLAS A. TROTTER, Plaintiff, v. DEPARTMENT OF REVENUE, State of Oregon, Defendant. ) ) ) ) ) ) ) ) ) ) TC-MD 060631D DECISION Plaintiff appeals Defendant s conference decision denying the pass-through loss 1 from A D & R, Inc. in tax year 2002, net operating loss carryback to tax years 1997 and 1999, and other items explained in Defendant s conference decision dated May 31, 2006. The court s Decision in A D & R, Inc v. Department of Revenue, State of Oregon, TC-MD No 060633D, filed March 20, 2007, setting forth the statement of facts, analysis and conclusion that addresses the net operating loss and other related adjustments including basis in stock and loans, distributions, gain on repayment of loans and loss carryback arising from Plaintiff s pro rata share of the net operating loss from A D & R, Inc. are made a part of the court s decision in the above-entitled captioned matter (TC-MD No 060631D). No evidence was submitted to the court with respect to the auditor s disallowance of Plaintiff s claimed medical expense deduction in the amount of $1,200 and allowance of Plaintiff s claimed charitable contribution deduction in the amount of $75. The auditor s /// 1 The shareholder s pro rata share of the income of an S corporation is subject to tax under ORS chapter 316. ORS 314.734(1). All references to the Oregon Revised Statutes (ORS) are to year 2001. DECISION TC-MD 060631D 1 disallowance of the claimed medical deduction and allowance of the claimed charitable deduction are upheld. CONCLUSION After careful review of the testimony, evidence and applicable law, the court concludes that A D & R, Inc. and its shareholders incorrectly reported its purchase of the business known as Charl s Restaurant. As a result, the purchase of the assets, loans from shareholders and distributions to shareholders were not properly reported. Now, therefore, IT IS THE DECISION OF THIS COURT that Plaintiff, who is a shareholder in A D & R, Inc., a Subchapter S Corporation, will receive a pro rata share of A D & R s income and distributions based on his ownership interest in accordance with the court s Decision in TC-MD No 060633D; and IT IS FURTHER DECIDED that Plaintiff s itemized deductions for tax year 2002 are reduced in the amount of $1,125, and an additional subtraction in the amount of $447. Dated this _____ day of March 2007. ____________________________________ JILL A. TANNER PRESIDING MAGISTRATE If you want to appeal this Decision, file a Complaint in the Regular Division of the Oregon Tax Court, by mailing to: 1163 State Street, Salem, OR 97301-2563; or by hand delivery to: Fourth Floor, 1241 State Street, Salem, OR. Your Complaint must be submitted within 60 days after the date of the Decision or this Decision becomes final and cannot be changed. This document was signed by Presiding Magistrate Jill A. Tanner on March 21, 2007. The Court filed and entered this document on March 21, 2007. DECISION TC-MD 060631D 2
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