T.C. Memo. 1997-90
UNITED STATES TAX COURT
DOUGLAS E. KAHLE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 19712-94. Filed February 20, 1997.
P, an individual, owned rental real estate, which
produced passive losses under sec. 469, I.R.C. P was
also a partner in partnership A, which had nonpassive
losses from a nonrental real estate operation. Held, P
could not combine the rental operation and nonrental
operation into a single undertaking, and thus could not
deduct passive losses as active losses, because the
resultant undertaking would not pass the common
location/ownership test of sec. 1.469-4T(c)(2),
Temporary Income Tax Regs., 54 Fed. Reg. 20544 (May 12,
1989), and because the de minimis exception of sec.
1.469-4T(d), Temporary Income Tax Regs., 54 Fed. Reg.
20547 (May 12, 1989), is not satisfied. Held, further,
P was liable for additions to tax under secs. 6653(a)
and 6661(a), I.R.C., and for a penalty under sec.
6662(b), I.R.C.
Douglas E. Kahle, pro se.
Veena Luthra, for respondent.
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