10
significant part from the recapture of the allowance for
depreciation.
The testimony of petitioner regarding the sales of the
properties and his efforts connected with this activity was for
the most part general, inconsistent, unhelpful, and completely
uncorroborated. Under these circumstances, we are not required
to rely on petitioner's testimony to support petitioners'
position. Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir.
1989), affg. T.C. Memo. 1987-295; Geiger v. Commissioner, 440
F.2d 688, 689-690 (9th Cir. 1971), affg. per curiam T.C. Memo.
1969-159.
In summary, we find that petitioners held each of the
properties for investment and that petitioner was not in the
trade or business of a real estate dealer. Therefore, the rental
losses for the years at issue cannot be used to offset
petitioner's self-employment income. We sustain respondent on
this issue.
Respondent determined that petitioners are liable for
additions to tax under section 6651 for the taxable years 1991
and 1992. Section 6651(a)(1) imposes an addition to tax for
failure to file a tax return timely. The addition to tax is
equal to 5 percent of the amount of the tax required to be shown
on the return if the failure to file is not more than 1 month.
Sec. 6651(a)(1). An additional 5 percent is imposed for each
month or fraction thereof in which the failure to file continues,
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