Douglas Ritter - Page 7

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          properties.  Consequently, at trial we sustained respondent's               
          disallowance of the related expenses as deductions under section            
          162 or 212 due to a failure by petitioner to prove that he was              
          engaged in an activity for profit with respect to these                     
          properties.  Sec. 183.                                                      
               Even so, the real estate taxes petitioner paid on these                
          properties could be deductible under section 164 and allowable              
          under section 183(b)(2).  Brannen v. Commissioner, 78 T.C. 471,             
          499-500 (1982), affd. 722 F.2d 695 (11th Cir. 1984).  Section               
          164, however, is an itemized deduction.  See sec. 63(d); sec.               
          62(a).  Section 63 and the regulations thereunder do not                    
          authorize the election to itemize deductions unless a return is             
          filed.  Sec. 63(e)(1).  Because petitioner failed to file a                 
          return for the year in issue, he did not make the required                  
          election.  Consequently, petitioner is not entitled to any                  
          itemized deductions for the year.  Andreas v. Commissioner, T.C.            
          Memo. 1993-551.  Thus, petitioner may not deduct under section              
          164 any real estate taxes he may have paid in 1991 for the Church           
          Road, Charlotte Street, and Langdon Grove properties.                       
               After consideration of the record, we conclude that                    
          petitioner's use of the following properties constituted an                 
          activity engaged in for profit:                                             
               53 Mary Street, Binghamton, New York                                   
               99-101 Robinson Street, Binghamton, New York                           
               18 Pleasant Avenue, Binghamton, New York                               
               RD 2, Box 133 and Box 134, Conklin, New York                           





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