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petitioners' Federal income taxes in the amounts of $4,661 and
$3,299 for the taxable years 1991 and 1992, respectively. The
issue remaining for decision is whether the losses petitioners
claimed are passive activity losses within the meaning of section
469. More specifically, we must decide whether petitioners
materially participated in the rental activity at Wisp
condominium hotel.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. At
the time of filing the petition herein petitioners resided at
Rockville, Maryland.
During the years at issue petitioner Barry H. Scheiner
worked as a physicist for the U.S. Department of the Army in
Adelphi, Maryland. Petitioner Marilyn S. Scheiner (hereinafter
sometimes referred to as petitioner) worked as a college
professor at Montgomery College teaching accounting and business
subjects. Petitioner was also a partner in the accounting
partnership of Scheiner & Halpern. The partnership consisted of
two partners, both of whom maintained offices in their respective
homes. While the amount of time spent by petitioner and her
partner on partnership activities is not clear,2 the services
were performed primarily during the tax return preparation
season--January through mid-April.
2 Petitioner reported nonpassive income attributable to
Scheiner & Halpern on Schedules K-1 in the amounts of $11,636 in
1991, and $11,788 in 1992.
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