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Respondent determined deficiencies in petitioners' Federal
income taxes for 1991, 1992, and 1993 in the amounts of $2,675,
$2,842, and $2,366, respectively.
The issue for decision is whether petitioners' claimed
Schedule C losses for 1991, 1992, and 1993 constitute passive
activity losses under section 469. The resolution of this issue
turns on whether petitioners materially participated in the
activity of renting their condominium unit during the taxable
years in issue.
Some of the facts have been stipulated and are so found.
The stipulations of fact and attached exhibits are incorporated
herein by this reference. Petitioners resided in New Hope,
Minnesota, on the date the petition was filed in this case.
Petitioner husband works as an engineering manager for
Honeywell Corporation at its sensor guidance products division in
Minneapolis, Minnesota. His formal education consists of a
bachelor's degree in electrical engineering from the University
of Notre Dame and some graduate courses in the electrical
engineering program at the University of Minnesota. Petitioner
wife works as a librarian.
In October 1987, petitioners purchased condominium unit
number 40 (the unit) at Bluefin Bay, a condominium complex
1(...continued)
issue. All Rule references are to the Tax Court Rules of
Practice and Procedure.
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