Victor M. Bello - Page 22




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          not entitled to his claimed 1992 and 1994 losses from Roadmaster            
          Leasing.12                                                                  
          Issue 4.  Section 6662 Accuracy-Related Penalties                           
               Respondent determined that petitioner was liable for an                
          accuracy-related penalty under section 6662(a) and (b)(2) for               
          substantial understatement of his income taxes for 1992 through             
          1995.                                                                       
               An understatement of income tax is substantial if it exceeds           
          the greater of (1) 10 percent of the tax required to be shown on            
          the return, or (2) $5,000.  See sec. 6662(d)(1).  Except in the             
          case of an item attributable to a "tax shelter", an                         
          understatement is reduced by the portion of the understatement              
          that is attributable to the tax treatment of an item for which              
          there is substantial authority, see sec. 6662(d)(2)(B)(i), or               
          with respect to which there is adequate disclosure, see sec.                





               11(...continued)                                                       
          the intent of the partnership.  In order for a partnership to be            
          entitled to a deduction for expenses attributable to a trade or             
          business in computing its taxable income (or loss) under sec.               
          703(a), it must be established that the partnership engaged in              
          the activity in question with a profit motive.  That profit                 
          motive analysis is to be made at the partnership level.  See                
          Brannen v. Commissioner, 722 F.2d 695, 702-705 (11th Cir. 1984),            
          affg. 78 T.C. 471, 499-505 (1982).                                          
               12On brief, petitioner contends in the alternative, that he            
          should be allowed an abandonment loss under sec. 165.  We do not            
          consider this abandonment loss issue to be properly before us, as           
          petitioner never timely raised this issue and is attempting to do           
          so for the first time on brief.                                             




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