Rahim A. and Lisa R. Munshi - Page 2

                                                - 2 -                                                 

                  After concessions,2 the issues for decision are:  (1)                               
            Whether petitioners are entitled to Schedule C depreciation                               
            expense in the amount of $3,200, and (2) whether petitioners are                          
            entitled to Schedule C rental expense in the amount of $2,410.                            
                  Some of the facts have been stipulated and are so found.                            
            The stipulation of facts and attached exhibits are incorporated                           
            herein by this reference.  Petitioners resided in Cerritos,                               
            California, at the time of the filing of this petition.  Because                          
            the activities herein were conducted by Rahim A. Munshi, all                              
            further references to "petitioner" will be to Mr. Munshi.  During                         
            the year at issue, petitioner was a full-time engineer in the                             
            aerospace department of Northrop Corporation.                                             
                  For some time, because of defense cutbacks and company                              
            layoffs, petitioner had become concerned about job security.  He                          
            decided to go into real estate as another source of income and                            
            obtained a real estate salesperson license on July 2, 1990.                               
            After obtaining his license, petitioner researched real estate                            
            offices to find a place to hang his real estate license.                                  
                  Petitioner became associated as a real estate salesperson                           
            with Real Estate Plus, Inc. (REP), which was operated by broker                           
            Wray Beihagi.  Pursuant to the "Real Estate Special Commission                            
            Choices" agreement signed by petitioner on October 10, 1990,                              

            2           Respondent conceded $840 of the Schedule C rental                             
            expense.  Petitioners conceded that they received interest income                         
            of $265.                                                                                  

Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011