Harry E. Thomason and Estate of Hattie D. Thomason, Deceased, Mary T. Crist, Personal Representative - Page 20

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          confused about the nature and extent of his legal activities in             
          1991.  Petitioner occasionally appeared in court in connection              
          with his rental real estate activity, as well as with respect to            
          rental houses owned by his children (which he managed).                     
          Oftentimes, petitioner was required to file lawsuits against his            
          tenants to recover delinquent rental payments or to evict a                 
          tenant.  On this record, substantially all of petitioner's legal            
          activities during 1991 were in connection with his rental real              
          estate activity in Maryland.  Additionally, the canceled checks             
          submitted by petitioner showing payments of expenses he alleges             
          were "legal activity" expenses were claimed by petitioner on                
          Schedule E of the 1991 return (as part of his rental real estate            
          activity expenses) and were allowed by respondent.13                        
               Petitioner failed to present any evidence, other than his              
          own fragmented and self-serving testimony, to show that he                  
          performed any legal activities other than those performed in                
          connection with his rental real estate activity.  No evidence was           
          presented that would tend to show that petitioner was engaged in            
          the trade or business of a law practice in 1991, within the                 
          meaning of section 162.  Moreover, petitioner presented no                  
          evidence to show that he incurred expenses, carrying on legal               
          activities in 1991, in excess of the amounts allowed as                     

          13                                                                          
               This indicates to the Court that petitioner, himself,                  
          considered his "legal activities" in 1991 to be a part of his               
          rental real estate activity.                                                




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