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in 1984. The Court concludes from this that petitioner's
expenses relating to his Bridgewater property during 1983, which
he may well have claimed on a 1983 Schedule C of his return, were
minimal, and the trade or business expenses he claimed that year
related to his commodity futures activity, which the IRS may have
recognized as a trade or business activity. Petitioner could not
have justifiably relied on this IRS position for the 1990 tax
year because the Schedule C for the 1990 tax year did not involve
any expenses relating to the commodity futures activity but only
involved expenses relating to development of the Bridgewater and
Clinton, New Jersey, properties and the $12,500 bad debt
deduction relating to the Knoxville, Tennessee, properties. The
factual circumstances of 1990, therefore, were totally different
from petitioner's 1983 activity. The Court, therefore, rejects
petitioner's contention that he relied on the position taken by
respondent on his 1983 return. With respect to the $12,500 bad
debt deduction claimed on Schedule C of petitioners' 1990 return,
petitioner knew that his debt related solely to the Knoxville,
Tennessee, properties. Petitioner knew that the rental income
and expenses of these properties did not constitute a trade or
business activity for purposes of section 162(a) because he
reported the rental income and expenses from these properties on
Schedule E of his return, thus correctly treating these
properties as properties held for the production of income.
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