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All section references are to the Internal Revenue Code in
effect for the years in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
After concessions,1 the first set of issues for decision is
whether petitioner incurred a gain or a loss on the disposition
of residential real property and whether the gain or loss should
be treated as ordinary or capital. Subsumed within this first
set of issues are the questions of whether petitioner has
adequately substantiated the expenditures claimed for the
residential real property and whether that property was primarily
held for sale to customers in the ordinary course of a trade or
business.
The second set of issues deals with whether petitioner is
entitled to a variety of deductions pursuant to sections 163,
164, 165, and 170. Finally, we must decide whether petitioner is
liable for the additions to tax under sections 6651(a) and
6654(a).
We combine our findings of fact and opinion under each
separate issue heading. Some of the facts have been stipulated
and are so found. The stipulation of facts, the supplemental
stipulations of facts, and the attached exhibits are incorporated
1 Respondent concedes the tax deficiency and sec. 6651(a)
addition to tax for 1992. For the 1994 tax year, the parties
agree that petitioner realized the following income: (1) A $107
net short-term capital gain, (2) $41 in dividend income, and (3)
$6,025 in interest income.
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