- 22 - 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.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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