Osama A. Mowafi - Page 3




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          weekends.2  He sometimes worked for GTE on the weekends but                 
          usually spent his weekends in Virginia with his wife, son, and              
          daughter.                                                                   
               Petitioner also was involved with 17 rental real estate                
          properties (rental properties) located in Virginia.  He and his             
          wife jointly owned nine of these rental properties, two of the              
          others were owned by his brother, and the remaining six were                
          owned by a partnership in which petitioner was a partner.                   
          Petitioner devoted some of his personal time during each of the             
          subject years to maintaining and accounting for all of the rental           
          properties.                                                                 
               On his 1994 and 1995 Federal income tax returns, petitioner            
          recognized losses of $115,977 and $92,037, respectively,                    
          attributable to the rental properties.  Respondent determined               
          that these losses were passive losses the recognition of which              
          was prohibited by the passive activity loss rules of section 469.           
                                       OPINION                                        
               Respondent determined and argues that petitioner may not               
          deduct his claimed losses on account of the rules of section 469,           


               2 Petitioner asks the Court to find as a fact that he worked           
          in Massachusetts fewer than 3 days a week, referencing his 1994             
          and 1995 Massachusetts nonresident income tax returns reporting             
          that he worked in Massachusetts during those respective years on            
          96 days and 86 days.  We decline to do so.  The record as a whole           
          indicates that petitioner was physically present in Waltham at              
          least 46 weeks while he worked for GTE, less 25 percent of that             
          time during which he was physically absent from Waltham while               
          conducting business for GTE.                                                




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