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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.
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