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Property 1995 1996
Over the Road Trailers $22,357 $16,489
Warehouse (Stillwater) 600 600
Buy N Bye #7 32,128 34,791
Buy N Bye #6, #12, #13 306,272 330,688
Conoco Cmart #16 52,644 87,868
Office building (Stillwater) -- 20,688
Carwash (Ponca City) -- 21,000
Total nonpassive income $414,001 $512,124
The result to petitioner is that his passive losses from his
other rental properties are subject to the passive loss
limitations under section 469. The following rental losses were
disallowed by respondent:
Property 1995 1996
Buy N Bye #2 $24,856 $14,446
Office building (Stillwater) 6,838 -–
Western Sizzlin’ PC –- 114,811
Airplane 355,147 255,096
Total passive losses $386,841 $384,353
Petitioner contends that the application of section 1.469-
2(f)(6), Income Tax Regs., is arbitrary, capricious, and contrary
to the Code because similarly situated properties are treated
differently solely on the basis of whether they show a profit or
loss for the year. Petitioner argues that the regulations
produce an inequitable result and are not appropriate where
multiple properties are leased to a single business enterprise.
This Court has previously addressed the validity of section
1.469-2(f)(6), Income Tax Regs., and held that the
recharacterization of net income from self-rented property was
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