- 15 - Issue 3. Net Loss for Rental Real Property Respondent determined that petitioners' net loss for rental real property in 1990 is limited to $25,000. Petitioners assert that they are not limited by the $25,000 rental loss allowance and that they are entitled to deduct $57,975, the full amount of their loss. During 1990, petitioners owned five separate parcels of rental real property. Four of the properties were located in Scottsdale, Arizona (the Scottsdale properties), and one was located in Sumner, Washington (the Sumner property). The Scottsdale properties, which comprised two townhomes and two condominiums, were upscale, resort-oriented properties with numerous amenities. The Sumner property was a lakefront single- family dwelling with an unobstructed view of Mt. Rainier. Lois B. Koenig (Mrs. Koenig) personally conducted the leasing activities for the Sumner property. Petitioners engaged Racquet Club Realty to act as a rental broker to locate tenants for the Scottsdale properties. Mrs. Koenig was responsible for the management, maintenance, and operation of the rental properties. Her responsibilities included collecting rents and arranging for necessary repairs. In addition, when tenants moved out, it was necessary to clean and sometimes paint the rental properties before new tenantsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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