Syed Mohammad Jameel Hasan - Page 3

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               Respondent, in the notice of deficiency, determined that               
          these losses constituted passive activity losses, and only 10               
          percent of these losses were deductible for 1990, and none of the           
          losses were deductible in 1991.  Further, for the taxable year              
          1990 respondent determined that petitioner was entitled to deduct           
          an additional $1,520 for personal interest expense but disallowed           
          a $55 foreign tax credit.  Respondent's determinations in the               
          notice of deficiency are presumed correct, and petitioner bears             
          the burden of proving otherwise.  Rule 142(a); Welch v.                     
          Helvering, 290 U.S. 111, 115 (1933).1                                       
               Section 469 provides that passive activity losses of a                 
          publicly traded partnership (PTP) are allowed only to the extent            
          of passive activity income from the same PTP.  Sec. 469(a),(k).             
          Disallowed passive activity losses must be carried forward and              
          used to the extent of future income from the same PTP or used               
          when the entire interest in that PTP is sold.  Sec. 469(b), (g),            
          (k).  A PTP is one in which the interests are traded on an                  
          established securities market.  Sec. 469(k).  A "passive                    
          activity" is any activity involving the conduct of a trade or               
          business in which the taxpayer does not materially participate.             

               1Unless otherwise indicated, all Rule references are to the            
          Tax Court Rules of Practice and Procedure, and all section                  
          references are to the Internal Revenue Code in effect for the               
          taxable years in issue.                                                     

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