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C E Shirley Trust, respectively. After taking into account a
deduction of $100 for a personal exemption, it reported a loss of
$100 and no income tax due.
The property involved in the rental activity was used by the
J. Shirleys during 1995 as their personal residence. With
respect to the rental activity, Caralan Trust reported gross
income of $42,000 and expenses of $66,165, which gave rise to the
claimed rental activity loss of $24,165. Among the expenses
claimed by Caralan Trust in computing that loss were personal
expenses of the J. Shirleys. Caralan Trust also reported (but
did not claim in computing adjusted total income) an allowance
for depreciation in the amount of $19,896 on account of property
that the J. Shirleys used as (and in) their personal residence.
The $42,000 reported as rental activity gross income is the same
amount claimed by Alexion on the Alexion 1995 return as rent paid
for business property. Caralan Trust reported $19,896 as the
J. Shirley’s share of the depreciation deduction computed by
Caralan Trust.
C E Shirley Trust
C E Shirley Trust is a trust created by the C. Shirleys.
C E Shirley Trust was created on July 1, 1995.
For 1995, Curtis E. Shirley made a return of Federal income
tax for C E Shirley Trust on Form 1041, U.S. Income Tax Return
for Estates and Trusts (the C E Shirley Trust 1995 return). He
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