Richard S. Holbrook - Page 7




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          ambit of “disqualified income” under section 32(i) and exceeds              
          the threshold amount ($2,200).3  Accordingly, petitioner is not             
          entitled to claim an EIC.                                                   
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
                                                  Decision will be entered            
                                             for respondent.                          

























          3   We note that the phrase “not derived in the ordinary course”            
          also appears in sec. 469(e), which deals with portfolio income in           
          the context of the passive loss rules.  These types of portfolio            
          income include income that would be disqualified income.  See               
          sec. 1.469-2T(c)(3)(ii), Temporary Income Tax Regs., 53 Fed. Reg.           
          5713 (Feb. 25, 1988).                                                       





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