Lloyd Patterson - Page 5

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          forth various factors to consider.  Sec. 1.183-2(b), Income Tax             
               On this record, we must conclude that petitioner did not               
          engage in his apartment house activity in 1991 for profit within            
          the meaning of sections 162, 212, or 183.                                   
               We turn to section 183(b) which provides in pertinent part             
          that in the case of an activity which is not for profit, the                
          deductions allowable are those allowable "without regard to                 
          whether or not such activity is engaged in for profit."                     
          Respondent has agreed that petitioner substantiated $1,849 of               
          mortgage interest paid in 1991, and that this amount is                     
          deductible under section 163 without regard to whether the                  
          activity is engaged in for profit and is to be added to his                 
          itemized deductions.  Sec. 183(b).  Except for this amount,                 
          respondent is sustained on this issue.                                      
               Respondent also disallowed $1,180 claimed as New York City             
          mortgage recording tax and transfer tax on petitioner's Schedule            
          A.  These taxes related to the purchase of the apartment house.             
          We have concluded that the apartment house is not an activity               
          engaged in for profit.  These expenses are not currently                    
          deductible.  Sec. 183(b).                                                   
               Respondent also disallowed a claimed charitable deduction              
          of $1,534.  At trial, respondent maintained that petitioner had             
          not substantiated any charitable contributions.  Petitioner                 
          claimed he had a "little notebook" in which he recorded                     

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