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deducted the following expenses and net loss from their purported
“Louisiana Creole/Cajun” restaurant business at the 5401-9 S.
Broadway property:
Expenses:
Interest $116,121
Insurance 10,000
Utilities 3,000
Lease expense 3,000
132,121
Net loss (132,121)
On their 1990 return, petitioners failed to elect to
relinquish, under section 172(b)(3)(C), the 3-year carryback
period otherwise required by section 172(b)(1)(A) with respect to
their claimed 1990 NOL. If petitioners had carried back the 1990
NOL to 1987, 1988, and 1989, as required, their claimed 1990 NOL
would have been reduced by $44,820.
The 1991 NOL carryover arose from a net loss of $73,235
petitioners claimed on the Schedule C to their 1991 return. On
their 1991 Schedule C, petitioners reported no income and
deducted the following expenses and net loss from their
restaurant business at the 5401-9 S. Broadway property:
Expenses:
Interest $43,276
Insurance 3,439
Utilities 2,077
Repairs and maintenance 2,211
Supplies 1,263
Taxes and licenses 6,492
Other 14,477
73,235
Net loss (73,235)
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