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prepared for petitioner showing an allocation to petitioner of
$650 of nonpassive income and $650 of depreciation. The
allocation of $650 of nonpassive income was attributable to the
$650 petitioner was scheduled to receive from HEH in late 1996
pursuant to the partnership agreement.
OPINION
Prior to November 5, 1990, individual taxpayers were
permitted to claim a residential energy credit against their
income tax liability. Sec. 23(a)(2),3 (b)(2), and (c)(2)(A), (5)
(before its repeal by the Omnibus Budget Reconciliation Act of
1990 (OBRA), Pub. L. 101-508, sec. 11801(a)(1), 104 Stat. 1388-
520). Effective November 5, 1990, OBRA sec. 11801(a)(1) repealed
the residential energy credit for individuals. The energy
credit, however, continued to be deductible after 1990 as part of
the general business credit available to certain taxpayers,
including certain trusts and estates. Sec. 38; see also sec.
50(d) (providing that, in calculating the general business credit
authorized by sections 46, 48, and 50, the rules of section 48(f)
relating to certain estates and trusts continue to apply).
2(...continued)
because the original return reported distributions incorrectly as
interest.
3Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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