Kathleen Patricia Peters - Page 9




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          understatement and thereby is effectively precluded from                    
          establishing to the contrary.”  Id.                                         
               Petitioner is not entitled to relief from joint and several            
          liability under section 6015(b).  With respect to the disallowed            
          rental loss deductions, we find that petitioner was fully aware             
          of all the underlying factual circumstances concerning the rental           
          of the condominium unit to her own daughter.  Petitioner argues             
          that, while she may have known of the rental income, she did not            
          have any knowledge concerning the rental expenses which led to              
          the losses.  Contrary to petitioner’s assertion, the disallowed             
          loss deductions were the result of the application of the section           
          469 passive activity loss rules, not the claimed expense                    
          deductions--respondent has not challenged the legitimacy of the             
          expenses themselves.  Thus, petitioner’s request for relief                 
          essentially is based upon ignorance of the law; namely, ignorance           
          of the passive activity loss limitations of section 469.                    
          Ignorance of the law is not a basis for section 6015(b) relief.             
          Mitchell v. Commissioner, supra; Cheshire II, supra; Price v.               
          Commissioner, supra.                                                        
               With respect to the disallowed charitable contribution                 
          deductions, petitioner did not make a significant contribution              
          herself, she was unaware of a single contribution made by Mr.               
          Elesh, and her characterization of Mr. Elesh at trial was of                
          someone very unlikely to make such large cash contributions.                






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