4
In 1992, petitioners sold the Eden Prairie property.
Petitioners recognized a loss on the sale in the amount of
$5,806.85. At the end of 1992, petitioners still owned the other
two properties.
On their 1990, 1991, and 1992 Federal income tax returns,
petitioners included the gross rental receipts from real estate
and the related deductions on petitioner's Schedule C, as profit
or loss from petitioner's business, Nadeau Rentals. Petitioner
reduced his self-employment income by the loss from Nadeau
Rentals for each of these years. In all of the years in issue,
petitioners claimed depreciation deductions for the properties as
residential real estate. Petitioners' Federal tax return for
1990 reflects the sale of the Pillsbury property as the sale of a
personal residence and the sale of business property.
Petitioners recognized the portion of the gain attributable to
the sale of the business property, all of which represented
recapture of depreciation.
Petitioners' 1991 Federal income tax return was due on or
before April 15, 1992. Petitioners received an automatic
extension of time for filing that return until August 15, 1992,
and filed on September 21, 1992. Petitioners' 1992 Federal
income tax return was due on or before April 15, 1993.
Petitioners were granted extensions of time for filing that
return until October 15, 1993, and filed it on February 24, 1994.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011