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bankruptcy and listed petitioner as an unsecured creditor. On
May 5, 1994, petitioner was notified by the bankruptcy court that
Mr. Rawoof had been discharged from certain of his debts
including that to petitioner.
Petitioner's Real Estate Activity
In 1993 petitioner owned 21 separate parcels of residential
real property either individually or in partnership with his
spouse. Petitioner owned one other parcel of real estate in
partnership with someone other than his spouse. The properties
were usually subject to 1-year or 6-month leases but became
month-to-month upon lapse.
Petitioner reported income or loss from his real estate
rental activities on Schedule E, Supplemental Income and Loss.
On his Forms 1040, U.S. Individual Income Tax Return, for 1992,
1993, and 1994, petitioner reported total rental losses of
$62,903, $35,456, and $82,230.1
Discussion
Petitioner's Money-Lending Activity
Respondent argues that petitioner was not engaged in the
trade or business of lending money and alludes to section 183,
Activities Not Engaged In For Profit. To conclude from the
record in this case that petitioner did not intend to make a
1Petitioner reported on Schedule E a total loss of $80,159,
but on line 17 of the Form 1040 for 1994 he claimed a rental real
estate loss of $82,230. The discrepancy is unexplained.
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