- 7 -
Loss (113) (3,988) -- (33,155) --
Deductible rental loss (113) (3,116) (1,172) (74,350) (78,751)
Petitioner treated his activities with respect to the
Cloudia and the three residential rental properties
identified on Schedule E as passive activities within the
meaning of section 469(c). Accordingly, petitioner filed
Form 8582, Passive Activity Loss Limitations, with his 1990
return. In substance, the losses deducted on Schedule E in
the aggregate amount of $78,751 were computed as follows:
2709 1813-15
Activity NW 12th NW 22d 1809 Carey Pl. Cloudia Total
Current year gains $19,788 -- $58,963 -- $78,751
Current year loss (113) ($3,988) -- ($33,155) --
Accumulated loss -- (617) (1,172) (76,738) --
Total gains 19,675 -- 57,791 -- 77,466
Total losses -- (4,605) -- (109,893) (114,498)
Ratio of losses -- 0.04022 -- 0.95978 1
Allowed losses -- (3,116) -- (74,350) (77,466)
Passive activity
loss carryforward -- (1,489) -- (35,543) (37,032)
Amount deducted (113) (3,116) (1,172) (74,350) (78,751)
In the subject notice of deficiency, respondent
determined that petitioner is not entitled to deduct the
loss claimed on Schedule E with respect to the Cloudia.
The notice of deficiency explains this adjustment as
follows:
It is determined the Schedule E passive
activity loss of $74,350.00 relating to the
vessel, Cloudia, is disallowed because it
has not been established that the property is
held for use by customers pursuant to Internal
Revenue Code Temporary Regulation 1.469-1T(e)(3)
and 1.469-4T(b). In addition, the deductions
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Last modified: May 25, 2011