Robert Serenbetz and Karen J. Serenbetz - Page 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                         
                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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