-2- The dispute between the parties concerns the deductibility of losses reported by petitioners in 1991 and 1992 that are attributable to their Vermont resort condominium.1 In this regard, we must decide whether the losses constitute passive activity losses under section 469(a), which in turn depends upon whether petitioners materially participated in the rental of their condominium. All section references are to the Internal Revenue Code in effect for the years under consideration. All Rule references are to the Tax Court Rules of Practice and Procedure. FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. Petitioners, husband and wife, resided in Newtown, Pennsylvania, at the time they filed their petition. They timely filed joint Federal income tax returns for 1991 and 1992, the 2 years under consideration. 1 In another notice of deficiency, dated Oct. 18, 1993, respondent determined a deficiency in petitioners' 1990 income tax. That deficiency was also based on respondent's disallowance of a loss attributable to petitioners' Vermont resort condominium. Petitioners disputed the determinations set forth in all three notices of deficiency in a letter to the Court, dated Jan. 13, 1994, which we received and filed as an imperfect petition on Jan. 19, 1994. The letter was delivered to the Court by Federal Express, and thus did not bear a United States postmark. Because Jan. 19, 1994, is the 93rd day after the notice of deficiency for 1990 was mailed to petitioners, we granted respondent's motion to dismiss and strike year 1990.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011