Matti Kosonen - Page 13




                                        - 13 -                                          
          petitioner aggregated his losses is not clear notice that he                  
          intended to elect under section 469(c)(7).                                    
               2.   Whether Reporting That Net Losses Were Active Is an                 
                    Election Under Section 469(c)(7)                                    
               Petitioner argues that he treated his net losses as active               
          rather than passive and that he thereby elected to treat his                  
          rental real estate activities as one activity under section                   
          469(c)(7).  As evidence that he treated his net losses as active,             
          he points out that he reported on lines 22 through 26 and 42 of               
          Schedule E, line 1d of Form 8582, and statements in support of                
          Form 8582 of his 1994 return that, except for one property, none              
          of the properties had a passive gain or loss and that he did not              
          add his 1994 losses to previously suspended losses.  On line 42               
          of Schedule E, he reported the loss of $56,954 as though he were              
          a real estate professional and had sustained that loss in an                  
          activity or activities in which he materially participated.                   
          Petitioner contends that this shows that he elected to treat his              
          rental real estate activities as one activity under section                   
          469(c)(7).  We disagree.                                                      
               Petitioner’s reporting that his net losses were active is                
          not clear notice that he elected under section 469(c)(7) because              
          he would also have reported that his net losses were active if he             
          had materially participated in each of the seven rental real                  
          estate activities and had not elected under section 469(c)(7).                
          See sec. 469(c) and (d); sec. 1.469-5T, Temporary Income Tax                  





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011