B. Theodore and Wendy Chapin - Page 1

                                 T.C. Memo. 1996-56                                   

                               UNITED STATES TAX COURT                                

                    B. THEODORE AND WENDY CHAPIN, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 12106-94.      Filed February 14, 1996.                     

                    Ps own a beach condominium that is rented for an                  
               average period of 7 days or less during the June to                    
               September rental season.  A rental agent handles all leasing           
               arrangements, cleaning between tenants, and routine repairs            
               and maintenance.  Ps allege that they spend more than 170              
               hours during the nonrental season on cleaning and                      
               maintaining the condominium.  Held: For purposes of sec.               
               469, I.R.C., Ps' participation in the activity does not                
               constitute participation on a regular, continuous, and                 
               substantial basis.  Accordingly, the losses incurred are               
               subject to the passive loss rules of sec. 469, I.R.C.                  

               E. Gregory Lardieri and E. Newton Steely, Jr. (specially               
          recognized), for petitioners.                                               
               John C. Donovan, for respondent.                                       

Page:   1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011