Vashon C. and Beverly C. Jackson - Page 4




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          the "fair rental requirement" of section 280A.  Respondent's                
          counsel stated at trial that the "rents received" determined in             
          the statutory notice of deficiency were based on bank records and           
          statements from the Charitys.  The record does not include any              
          such evidence, and respondent's counsel's statement alone does              
          not have any probative value.                                               
               Based on petitioner husband's testimony and the lack of any            
          evidence which supports respondent's determinations of the "rents           
          received", we find that the Charitys paid $500 per month during             
          the taxable years in issue for their use of 2117 Hollins Court.             
          We hold that petitioners received rents in the amount of $6,000             
          during 1990, 1991, and 1992.                                                
               The second issue for decision is whether petitioners are               
          entitled to any deductions with respect to 2117 Hollins Court.              
               Petitioners claimed rental expenses for 1990, 1991, and 1992           
          in the amounts of $25,453, $23,586, and $23,859, respectively.              
          In the statutory notice of deficiency, respondent limited the               
          deductible amounts of petitioners' substantiated expenses to the            
          rents which he determined they had received on the ground that              
          "the rental arrangement with [their] relatives was not at fair              
          market value."  Respondent also determined that petitioners only            
          substantiated $11,735, $14,717, and $12,247, respectively, of the           
          expenses claimed on their 1990, 1991, and 1992 returns.                     








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