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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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