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from employment at nuclear power plants within a commuting
distance of Port Clinton from 1990 through 1992.
In September 1992, petitioners purchased a triplex in Port
Clinton for investment purposes.
Petitioners hired Tom Tomasek (Tomasek), who worked for
Professional Bookkeeping Service, Inc., located in Blair,
Nebraska, to prepare their 1990, 1991, and 1992 tax returns.
Petitioners never met Tomasek. A coworker recommended Tomasek, a
former internal revenue agent and accountant for approximately 10
years, to petitioners. Tomasek had experience working with
nuclear plant employees like petitioners. Mr. Baugh initially
contacted Tomasek by telephone to inquire about the taxability of
petitioners’ per diem/travel allowances. During their first
conversation, Tomasek explained the criteria for excluding the
per diem/travel amounts from gross income.
In preparing petitioners’ 1990, 1991, and 1992 Federal
income tax returns, Tomasek did not include the per diem/travel
amounts in gross income. On petitioners’ 1990, 1991, and 1992
returns, both 414 Monroe and 414-1/2 Monroe were listed as rental
property on Schedule E, Supplemental Income and Loss. Line 1A of
Schedule E, Supplemental Income and Loss, on the 1990 and 1991
returns and line 1B of Schedule E, Supplemental Income and Loss,
on the 1992 return show “DUPLEX - 414 & 414.5 MONROE ST” as the
kind and location of petitioners’ rental real estate property.
On petitioners’ 1990 return, petitioners claimed duplicate
deductions for real estate mortgage interest on both Schedule A,
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Last modified: May 25, 2011