Guillermo Baez Espinosa - Page 3

                                        - 3 -                                         

                                  FINDINGS OF FACT                                    
               The facts have been fully stipulated, and they are                     
          summarized below.                                                           
               Guillermo Baez Espinosa (petitioner) was a nonresident alien           
          individual during the taxable years 1987 through 1991.                      
          Petitioner owned two rental properties located in Austin, Texas             
          (the Austin property) and Ruidoso, New Mexico (the Ruidoso                  
          property).  The properties produced gross rental income during              
          the years in issue in the following amounts:                                
               Property   1987      1988     1989      1990      1991                 
               Austin    $10,472 $10,200  $10,316  $10,385   $10,200                  
               Ruidoso   1,138   1,324      804    -0-      -0-                       
          When the expenses of producing the rental income including                  
          depreciation deductions are taken into account, each property               
          produced an annual loss.  Petitioner sold the Ruidoso property on           
          February 1, 1990, for $13,000 incurring a loss on the sale in the           
          amount of $13,315.2                                                         
               Petitioner was required to file a Federal income tax return            
          for each of the years in issue, and does not contend otherwise.             
          Sec. 1.6012-1(b)(1)(i), Income Tax Regs.  For petitioner's                  

          2   In the notice of deficiency respondent determined that                  
          petitioner was liable for income tax on the $13,000 received from           
          the sale of the Ruidoso property, with no offset of basis.                  
          Respondent concedes that sec. 874(a) allows petitioner to use the           
          basis in the property to determine the amount of the gain or                
          loss.  Sec. 874(a) does, however, deny a deduction for a loss               
          under sec. 165.                                                             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011