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petitioner. Petitioner's Form W-2 issued by Delta indicates that
petitioner was a participant in Delta's pension plan during 1993.
On Schedule E of his Federal income tax return filed for
1993, petitioner reported rents received in the amount of $21,995
and claimed deductions for expenses as follows:
Advertising $340
Auto and travel 1,710
Cleaning and maintenance 2,617
Insurance 2,602
Legal and other professional fees 127
Mortgage interest 27,263
Repairs 4,896
Supplies 78
Taxes 13,780
Utilities 1,721
Total $55,134
Thus petitioner claimed a loss of $33,139 from rental real
estate. Petitioner claimed a deduction of $2,000 for a
contribution to an IRA. Petitioner did not claim itemized
deductions but rather claimed a standard deduction of $5,450.
In the notice of deficiency respondent allowed petitioner
Schedule E deductions for mortgage interest and real estate taxes
in the amounts of $20,447 and $11,481, respectively. Respondent
determined that the remaining mortgage interest and real estate
taxes were paid with respect to the portion of the property that
was petitioner's home and office. Respondent allowed petitioner
a deduction for office expense of $5,322 and allowed petitioner
Schedule A deductions totaling $5,322. Respondent disallowed the
remaining expense claimed on petitioner's Schedule E with the
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